5 Bills You Didn't Know You Could Negotiate

We tend to think of bills as a fixed dollar amount we have no choice but to pay. But that's not always true. Companies need to keep their client base happy to remain in business, and many are willing to negotiate your bills if you just ask. Here are five types of bills you might be able to reduce.

1. Cable bill

Yes, I know, fewer and fewer people have cable these days. But if you're still hanging onto yours, you might be able to get a lower rate by calling and requesting one or threatening to cancel your account. Cable companies are losing customers left and right to streaming services, so most are willing to be flexible to keep their existing client base, especially if you sound like you're willing to cancel your service if the price isn't lowered.

2. Cellphone bill

Your cellphone provider may also be willing to offer you more favorable terms on your plan if you threaten to leave them for a competitor. However, this may not be a feasible option for you if you live in an area where one provider dominates the market.

3. Credit card bill

It's technically possible to negotiate with a credit card company to forgive some of your debt. But to do this, you typically have to stop making payments for an extended period of time, which ruins your credit. That should be a method of last resort.

Instead, you could try negotiating your interest rate. This won't reduce how much you currently owe, but it can prevent your balance from swelling further. This might make it a little easier for you to pay it off.

4. Bank fees

Checking and savings accounts can sometimes charge fees for things like having a low minimum balance or having an inactive account. It might be possible to waive these fees simply by calling the bank and requesting that it removes them from your account.

5. Tax bill

The IRS allows you to negotiate your tax debt through what's called an offer in compromise. This is where you tell the government what you can afford to pay toward your tax bill. It will weigh your offer, considering your income and assets. If it approves, you're off the hook for the remainder of what you owe. But if not, you'll have to make a lump-sum payment or set up a payment plan.

How to successfully negotiate your bills

To give yourself the best chance of reducing your bills, it's best to prepare before you reach out. Gather any data you'll need to make your argument. If you plan to claim that you deserve a lower rate because you've been a loyal customer for so long, be specific about how long you've had the account. If you're thinking about switching to a different provider, have that provider's prices at the ready so you can share them with your current company.

Then, call the company to request the lower price. It's best to do this over the phone as opposed to via email or live chat because you'll be able to speak to a live person to plead your case. Remember to always be polite when making these calls. The representative on the other end will be more likely to help you this way.

Finally, just because a company can reduce your bill doesn't mean it will. If it refuses, you'll need a backup plan. Maybe you really do switch to a different provider. Or maybe you scale back your plan to a more affordable option. Know where you'll go from there so you can come up with a new strategy for reducing your costs.