9 Bills You’re Overpaying (and How To Cut Them With One Call)

This video by Ramit Sethi provides actionable strategies and scripts for negotiating down various monthly bills, aiming to save viewers thousands of dollars annually. The core principle is that many common expenses are negotiable, and companies are motivated to retain existing customers rather than acquire new ones, which is significantly more expensive. **Credit Card APR:** The first area of focus is credit card Annual Percentage Rates (APRs). Sethi explains that high APRs, often around 24% in the US, can trap consumers in debt. He emphasizes that these rates are negotiable because credit card companies value loyal customers who pay on time. The strategy involves calling the credit card company, asking for the retention department, and using a script like: "Hi, I've been a loyal customer for seven years. I've noticed my APR is pretty high and I would like a lower rate. What can you do for me today?" Crucially, he advises employing the "STHU" (Shut The Hell Up) technique, meaning to remain silent after asking the question and let the representative make an offer. A successful negotiation can result in a percentage drop or a temporary promotional rate, potentially saving hundreds of dollars annually, as exemplified by a student who secured a 0% APR for 12 months. **Medical Bills:** Medical bills are highlighted as another area ripe for negotiation due to their opaque and often arbitrary pricing. Hospitals inflate bills, and many have financial assistance departments that can reduce what patients owe, though this information isn't proactively offered. The recommended approach is to: 1. Request an itemized bill to identify potential errors or duplicate charges. 2. If uninsured or paying out-of-pocket, ask for a "cash rate." 3. Mention financial hardship and inquire about financial aid or charity care policies. A script for this is provided: "Hi, I received a bill for $5,600. Can you send me an itemized bill so I can review all the charges? Also, what kind of discounts or payment assistance can you offer me? What if I pay in full? Can you walk me through the process of understanding my payment options and any options to lower the bill?" This can lead to significant discounts, 0% interest payment plans, or substantial bill reductions through financial aid. **Rent Negotiation:** Contrary to popular belief, Sethi asserts that rent is negotiable. Landlords lose money when properties are vacant, and finding new tenants is costly. Responsible tenants who pay on time are valuable assets. His personal experience in New York City involved negotiating rent four times over 11 years. The key is doing homework and making it easy for the landlord to agree. This involves monitoring local rental prices for similar units. The script involves stating appreciation for the current rental, highlighting tenant reliability, and presenting data on lower market rents, requesting an adjustment. For example: "I've also taken a look at rents in similar units in this neighborhood. I noticed that rents are down 6%, so I'd like to discuss an adjustment to my rent." Landlords might offer free months (equivalent to a rent reduction) or other concessions. Timing is crucial, starting negotiations 60-90 days before the lease ends. Reframing oneself as an ideal tenant and offering a longer lease in return can also be effective. Even if a rent reduction isn't achieved, avoiding an increase can save hundreds or thousands annually. **Student Loans:** Federal student loans offer various repayment options like income-driven repayment (IDR), deferment, and forbearance, which can significantly lower or pause payments based on income and circumstances. These options are not automatically offered and require proactive inquiry. The script for contacting loan servicers includes: "Hi, I'm looking at my student loan payments, and I'd like to explore what repayment options I have. Are there income-driven repayment options? Can you tell me what I qualify for based on my current income?" For temporary relief, one can ask about deferment or forbearance. For those with private loans, refinancing to a lower interest rate is an option. Public service loan forgiveness for government or non-profit employees is also mentioned. **Phone and Internet Bills:** Phone and internet companies often increase prices for loyal customers while offering better deals to new ones. Sethi advises negotiating annually, as these companies are in constant price wars and prioritize customer retention. The script: "Hi, I noticed my bill went up and I saw that the competitor is offering a better deal at a lower price. I'd love to stay with you. I've been a loyal customer for seven years, but I need to bring this cost down. What can you offer me today?" Asking about loyalty discounts or current promotions can yield 20-60% off monthly bills, often with free upgrades. **Car Insurance:** Car insurance rates can vary widely. Insurers often increase rates for existing customers upon renewal, assuming they won't shop around. The strategy is to shop around annually for quotes from other providers and then leverage this information to negotiate with the current insurer. The script: "Hi, I'm reviewing my car insurance and I've gotten some better quotes from two other providers. I like to stay with you, but I need you to match or beat this rate. Can you do that?" Savings of $300 or more annually are common. **Bank Fees:** Banks profit from fees, particularly overdraft fees. Sethi advises calling immediately if a fee is incurred, framing oneself as a loyal and responsible customer. The script: "Hi, I just saw an overdraft fee on my account for $36. I've been a loyal customer for eight years. I'd like to have this fee waived." If pushback occurs, reiterate loyalty and the potential to switch banks. Keeping a log of all calls and resolutions can be helpful in future negotiations. **Gym Memberships:** Gyms often make cancellation difficult. However, post-COVID, contracts have become more flexible. If you're a regular user, you can negotiate your current rate by inquiring about new member promotions. The script: "Hey, I've been a loyal customer for five years. I noticed that new members are getting a better rate. I'd like to stay, but I'd like for you to match that rate for me." If you're not using the gym, call to cancel and inquire about waiving cancellation fees. **Streaming Services and Subscriptions:** These recurring charges add up quickly. The first step is to list all subscriptions and ruthlessly cut those that are not frequently used. For those you wish to keep, contacting the provider or initiating cancellation online often triggers automated offers of discounts, such as two months free, to retain the customer. The video concludes by emphasizing that by applying these negotiation tactics, viewers can reclaim significant amounts of money, which can then be redirected towards investments or other financial goals, ultimately helping them live a "rich life."