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

You might be getting ripped off every single month on your internet bill, credit card fees, even your bank account. What if I told you that all of these are negotiable and you may be overpaying by thousands of dollars a year? I'm Ramit Sethi. For the last 20+ years, I've helped people take control of their money and live a rich life without tracking every penny. Today, I'll show you how to negotiate like a pro using word-for-word scripts that my students have used to save thousands. I'll show you how to handle the exact phone call to slash your bills without being rude or confrontational. And stick around, I'm going to share one tactic that saved one of my coworkers over $6,000 on a single call. Let's start with your credit card APR and why calling them today could instantly save you hundreds. APR is the interest rate your credit card company charges you when you carry a balance on your card at the end of the month. And it's like stepping in financial quicksand. That high interest rate slowly eats away at your money. It is important to lower that APR as much as you can since that's gonna make a big difference in how fast you can pay the debt off. Now, today the typical APR is about 24% in the United States, but the rates actually vary typically between 20% and 28% depending on your card and your credit profile. That means that there is some flexibility in how much you're paying. and this means that rate is sometimes negotiable. Remember that banks and financial companies in general are terrified of losing you as a customer. They spend a fortune to acquire new customers, so keeping you is way cheaper than replacing you. This is kind of why Vegas will give you a bunch of free meals when you're gambling. They don't want to lose you because they think they can make more money off of you. Unless you are my parents who go into a casino, take $20, and that is how much they are going to spend in that casino. And it doesn't matter if it's 1985 or 2025, they are spending the same amount. No accounting for inflation. Love you, Mom and Dad. Plus, these companies know that if you're paying on time, you are a gold mine compared to the risk of a new customer who might be worse than you are. But sometimes you actually have leverage to negotiate that rate down. So how do you play this game? Well, you're going to use your loyalty as leverage. You're You're not going to grovel. You're not going to beg. It's not about emotions. You're going to act like you are halfway out the door because indeed you have other options. Here's the exact script that I have used to help thousands of people slash their rates. Pull out your credit card. Look at the number on the back. Call it up and ask for the retention department. Then you say this: Hi, I've been a loyal customer for 7 years. I've noticed my APR is pretty high and I would like a lower rate. What can you do for me today? And then follow my STHU technique. Stands for shut the hell up, quiet down, don't fill the silence, let them come back with an offer. What can you expect? If you have a decent payment history, you might get a percentage drop or a temporary promo rate. This doesn't happen all the time, but sometimes it works, and when it does, it can be massive. For example, one of my students, Billy, called her credit card company after reading my book. She got her APR slashed from 20.99% to 0% for 12 months. That is hundreds of dollars in interest saved with one 5-minute call. Let me show you the math so you really get this. If you have a $5,000 balance at a 24% APR and you get it dropped to 18%, that's roughly $300 saved per year in interest alone. So pick up the phone today. Don't overthink it. Your APR is not necessarily carved in stone, and one call can put real money back in your pocket. Remember, it doesn't always work, but when you could potentially save thousands of dollars with one phone call, I think it's worth trying. Item number 2, medical bills. Medical bills can be overwhelming. Some of the numbers are simply staggering. You go in for a routine test or a quick procedure. Suddenly you're staring at a bill that has more zeros than you've ever seen in your life. A 15-minute appointment costs $500. Sometimes it costs $5,000. Here's what you need to understand. Medical pricing is opaque—means you do not know how much it's going to be—and it is often completely arbitrary. Different patients get charged different amounts for the exact same procedure. Hospitals inflate these bills for a variety of reasons, including the existence of for-profit insurance companies. And here's the thing you may not have heard about: hospitals have entire financial assistance departments whose job It is to reduce what you owe. But they're not going to call you up and volunteer that information. You have to ask. So here's the game plan. First, always request an itemized bill. Treat it like you are paying a bill at a restaurant. Did they charge you twice for dessert? Review the bill. When you look at that itemized bill, you might find duplicate charges or line items that simply make no sense. Second, if you are uninsured or paying out of pocket, ask what type of rates they can offer for a cash rate. Third, you can mention financial hardship if appropriate and ask about financial aid or payment plans. Many hospitals even have charity care policies, especially for low-income or uninsured patients. Here's your exact word-for-word script. 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? Now, what can you expect? You can often negotiate down the total amount. You can get on a 0% interest rate payment plan. Sometimes you can qualify for financial aid, and that may significantly reduce your bill. I have seen people save thousands of dollars just by asking these questions. I want to show you an example of a real post on Reddit about someone getting hit with a $500 bill for an in-home sleep study. Just a 15-minute appointment with a nurse to learn how to use the machine. They called the hospital's financial services department, explained that they had a newborn at home and they didn't expect such a high bill. Boom, 30% discount just like that. They saved $150 with one phone call. That is meaningful. One of my own team members had a $6,000 error on his medical bills, and that was just an insurance error. One call and boom, mistake rectified. Thanks for checking in. Things like this get missed all the time by hospitals, insurance companies, So if something looks off on your bill, call, ask about it. The bottom line is never pay a medical bill, especially a large one, without reviewing it first. Call, ask for an itemized bill, question anything that seems off, and then ask for discounts and financial aid. Remember, medical bills are not set in stone. They are padded. They are often negotiable. But you have to ask. Medical debt is one of the fastest ways that people get completely knocked off track financially. And yes, you can negotiate, you can reduce the bill. But if something serious happens, the real risk is what your family is left dealing with afterward, especially if you are the primary earner. That's where term life insurance can help. And this video's sponsor, Fabrik by Gerber Life, was built to help parents get term life insurance quickly and easily. Fabrik is term life insurance you can get done today. 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Now that we've talked about protecting your family from the biggest financial shocks, Let's get back to the bills you can control and negotiate today. All right. Number 3, negotiating your rent. Something amazing happens whenever I talk about negotiating your rent. People pop out of the woodwork and tell me 50 different ways that can't be done. And then when I tell them I have done it multiple times in New York City, they simply refuse to believe it. Look at these comments. But it is true. You actually can negotiate your rent. And the people who say that can't be done, I just simply ask them, have you ever tried? They go, no. Then how the hell would you know? Why would we listen to you instead of someone who's actually done it? Let me show you some actual numbers instead of your feelings about why something you've never done can't be done. Rents in Austin, Texas have gone down 22% from their peak price of a few years ago. Let's assume you lived in Austin, just as an example. Do you think you could negotiate your rent? Almost certainly. Now let me ask you the next question. How much have rents gone up or down in your neighborhood? You don't know because the vast majority of people— I'm talking over 99% of people— do not know what is going on with housing prices in their own neighborhood. So when you say rents cannot be negotiated, what you're really saying is, this makes me uncomfortable, I've never heard of anyone doing it, and And so therefore I'm going to say no. Let me explain why rents can go up and down. For landlords, vacancy means lost money. If you're a landlord and your apartment or house is vacant for even one month, that can wipe out an entire year's worth of profits. Finding a new tenant is expensive. You have to probably renovate the place, advertise, do showings, run background checks, and add up the lost rent while you are looking. Now, if you are a responsible tenant, you pay on time, you're not disruptive, you are valuable to the landlord, way more valuable than you think. So that gives you power when it comes time to negotiate. Let me tell you how I did it. I lived in an apartment in New York City for 11 years, and between that time I negotiated my rent 4 times over those 11 years. How? I freaking did my homework and I made it easy for them to say yes. I was always monitoring what was going on with rental prices, not only in New York, but in the class of apartment that I had. There's different classes, whether it be luxury, one-bedroom, two-bedroom, and on, on. And I would track it very carefully. They would send me a rent renewal notice and sometimes the number would be higher. Next year they're going to raise my rent. Sometimes it would be flat. I would set up a meeting and I would go in there to negotiate. I would have a thick stack of papers. And I would walk in and I would say, hey, I really appreciate renting here. As you know, I've been here for X years. I'm a great tenant. I always pay on time. 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. Now, let me tell you what they did. Sometimes they would say no, and I would say, you got to come back. Come back to me. This was a big company. I like negotiating with big companies because they are more rational than an individual landlord. But you should try regardless. And often they would say, "Nope, can't do it." Okay, fine. I had to make a decision. Was I ready to walk or did I want to stay? Sometimes they would say, "We're going to give you 2 free months." That is amazing. Notice that they did not want to actually lower the rent. There's a variety of reasons for that, but they gave me 2 free months, which is the equivalent of lowering my rent. Either way, I saved thousands. Some tips on making this more successful. Number 1, timing matters. Don't wait until your lease renewal shows up in your mailbox to start monitoring stuff. Enough. Number 2, start the conversation 60 to 90 days before your lease is up. That gives your landlord time to think about it without feeling pressured, especially if they're an individual landlord. Next, reframe yourself as the ideal tenant. Remind them you've been great, on time with rent, no issues, no drama. You can also offer something in return. Some of my students do this. Maybe you're willing to sign a longer lease, which might give them stability, might save them the hassle of finding someone new next year. And if they say no, Don't just give up. Ask for alternatives. If the rent increase is firm, could we talk about other options? Can we upgrade the appliances? Can you add parking? And on and on and on. Even if you don't get a rent reduction, you can still often avoid a rent increase, which is huge. Just think about it. If your rent is set up to go $100 up a month, avoiding that increase saves you $1,200 a year. Take that $1,200, put it in investments. Boom. Now, I've seen people negotiate their rent down by $150 a month just by agreeing to a 2-year lease. That's $1,800 a year or $3,600 over 2 years just from one conversation. Please don't feel bad if this doesn't work. This is not simply about what smooth-talking words you use. This ultimately comes down to supply and demand. When I negotiated my rent, there was a glut, an oversupply of apartments being built in New York at the luxury level. That is essentially why I could negotiate my rent. In a time like right now in New York City, where there's very, very low supply of apartments in New York, it will be incredibly difficult to negotiate your rent. But here's the key. Most people have no idea what is actually going on with supply and demand in their own city. So don't reflexively say no. Give it a shot. Item number 4, student loans. Student loans can often feel like this massive weight that you're carrying around. Every month you're sending off hundreds of dollars, sometimes thousands, towards this mountain of debt. And thanks to interest, feels like you're not even making a dent in the principal. Here's the thing. Federal student loans are built around repayment options. There are income-driven repayment, deferment, forbearance, even forgiveness programs. And what that means is you can pause or shrink payments sometimes based on your circumstances, sometimes to zero for a time. The problem is nobody's going to offer you these things unless you call up and ask. Nobody's going to call you up and say, excuse me, Did you know you could lower your payments based on your income? If you are struggling to pay your student loans, you have options. For example, applying for an Income-Driven Repayment Plan, or IDR. These plans base your payment on your income and family size. In some cases, your calculated monthly payment can be as low as $0 depending on your income level. You can also request a temporary pause through deferment or forbearance. These are options designed for short-term hardship. During deferment, interest is not going to accrue, during forbearance, it will. Most of what we just discussed is for federal loans. If you have private student loans, it's a different story. You can consider refinancing to lower your interest rate, but depends on what the interest rates are at the time. But the point is, there are options, and you have to pick up the phone to find them out. Here's the word-for-word scripts to call your loan servicer. 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? If you need temporary relief, you can also say, I'm going through a financial hardship right now. What options do you have for me, including deferment or forbearance? Can you explain those options to me? And if you work full-time for a government or a qualifying nonprofit organization, you can say, I'd like to check if I qualify for public service loan forgiveness. And what other options I might qualify for. Now, what can you expect? With IDR, your payments could drop dramatically. And if you have good credit and a stable job, you might be able to refinance your private loans for a better interest rate. One of my students, Lila, refinanced $10,000 in private student loans, reduced her interest rate from 8% to 6%, which saved her about $2,000 over the life of the loan. Bottom line, the worst thing you can do when paying your student loans is just keep paying them without exploring your options. Pick up the phone, call them, and ask what options they have for you. By the way, if you're watching this right now and you're thinking, I really need to do something about my money, but I'm not sure what. Should I start investing? Should I pay off debt? How do I save for my kids' education? How do I just take control of this? Then my money coaching program will walk you through setting up your entire financial system in 48 hours. Not in theory, not someday, today. You'll get live calls with me, a community for support, and a step-by-step plan for investing, paying off your debt, and getting your money working for you. And best of all, the whole point of money coaching is not simply to get into a spreadsheet and start messing around with numbers. It's actually to use money to live your rich life, whether that means eating out, whether that means a vacation, whether that means redecorating your house. I will show you how to use your money to live your rich life. So if you are ready to stop consuming material, and start taking control of your money. Scan this QR code or click the link in the description below to join my money coaching program. Item number 5, phone and internet bills. You know, these freaking companies love to jack up the payments that you are paying them. Phone, internet companies. And the bitter reality is that they actually focus on the most loyal customers. They're giving the best deals to new customers. So here's what you need to know. Your phone and internet companies are in constant price wars with each other, and their number one priority is acquiring new customers and ideally retaining them. That is you. That means that you have leverage to get discounts as an existing customer so they don't lose you to a competitor. And they've got promotions running all the time— discounts, free upgrades, faster speeds— but they are never going to offer them to you unless you ask. Let me give you an exact word-for-word 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 7 years, but I need to bring this cost down. What can you offer me today? If they hesitate, if they try to upsell you on something, say, what kind of loyalty discounts or current promotions can you apply to my account? With this strategy, you can often get $20 to $60 knocked off your monthly bill right there on the call. Sometimes they'll throw in free upgrades like faster internet, more channels, or waived equipment fees. And here's a pro tip from my book. I recommend negotiating these bills once a year as part of your annual financial maintenance. Set a reminder in December, spend a few hours calling your service providers, your phone, internet, cable, all of it. It's one of the easiest ways to save hundreds of dollars without changing your lifestyle at all. Item number 6, car insurance. Similar to phone and internet, car insurance companies treat you like a captive customer and they will give you rate increases and the worst service compared to new customers. Insurance companies raise rates on loyal customers because they know you're not really gonna check. It's just on auto renew. The car insurance market is ultra competitive, and rates can often vary wildly for the same driver profiles. So while insurers are using renewal times to creep up rates on unsuspecting customers, you are gonna be ready. Here's what you need to do. Get out your calendar right now, and every 12 months, We are gonna shop around. You can use comparison sites like insure.com or just call 2 to 3 different carriers directly and get the quotes. It'll take you maybe 30 minutes. Take those numbers, call your current insurer, tell them what you found, and ask them to match it or beat it. And don't just assume that bundling your car insurance with your home insurance is automatically cheaper. Make sure you run the numbers. Sometimes it is, sometimes it's not. Here is your word-for-word script. Hi, I'm reviewing my car insurance and I've gotten some better quotes from two other providers. I'd like to stay with you, but I need you to match or beat this rate. Can you do that? Just keep it simple. Don't apologize. Just ask. Here's what we've seen after testing this with thousands of people. Savings of $300 a year or more for the same coverage, sometimes better. That's a lot of money, especially when you combine that with things like your phone and insurance. We're talking about saving over $1,000 with two phone calls. Price checking once a year can save you a lot of money, even more over your lifetime. Remember, car insurance is just a product like any other product. Treat it like something else you would shop around for. Don't let those premiums creep up on you every single year. Okay, next up, item number 7, bank fees. Banks make billions of dollars every year off those little gotcha fees. And the most painful and expensive ones are usually overdraft fees. If you don't have enough money in your checking account to cover a purchase, your bank will often charge you around $35 extra on top of the money you already don't have. So here's what you do. If you see a fee on your account, call immediately. Don't wait. Frame yourself as a loyal customer who's been responsible. Here is your exact script. Hi, I just saw an overdraft fee on my account for $36. I've been a loyal customer for 8 years. I'd like to have this fee waived. Stop talking. Let them respond. If they push back, try this. I understand, but I've been a really good customer. I'd hate for this one fee to have to drive me away from your service. What can you do to remove it? If they say no, ask for the retention department. Please remember that fee reversals, especially late fees on a credit card or overdraft fees here, are common, and most of these will get refunded the first time. Pro tip: keep track of every call you make to your bank. You can use a spreadsheet where you log the date, time, name of the rep, their ID number, and what was resolved. And if you have to call to dispute a fee, you can reference the last time you called, and you can even cite their name, date, and your notes. Most reps will give in because they know you came to play ball. And if your bank refuses to play with you, remember, it's not that the person on the phone is a bad person. They are often constrained by what their system will allow you to do. But my suggestion, I really don't care. Switch banks. You have lots of options and you have lots of power as a consumer. There's tons of competition. Before we move on to the next item you're overpaying for, I noticed that you have not subscribed to this channel yet. Hit that subscribe button, turn on notifications so I can keep showing you exact ways that you can make money and spend money more meaningfully. Item number 8, gym memberships. Okay, January rolls around, you sign up for a gym membership. This is the year it's finally happening. And then 2 weeks later, maybe you're just not getting out there as much, but I guarantee you that $60, $80, $120 is coming out of your account every single month like clockwork. Here's what I want to suggest to you. Even if you want to cancel your gym membership, gyms make it hard. Suddenly there are cancellation fees. Some of them require you to come in in person. It's crazy. But I will say things have changed post-COVID. Gym contracts have become a lot more flexible, in part because they were losing a lot of members and they were desperate to keep people. That means they would rather negotiate with you, give you a discount, or pause your membership than lose you completely. And if you're actually using your gym regularly and you still want to keep it, sometimes you can negotiate the fees. Gyms are notorious for offering discounts to new members, running promotions, but they rarely extend those to existing members unless you ask. So call them up and say, hey, I've been a loyal customer for 5 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. Or try this one. I saw that other gym is offering $50 a month. Can you match that? Gyms want to keep you as a paying member, so they are sometimes willing to negotiate. But if you're not using it, if you think there's a better deal, move. You have options as a consumer. You know, I've worked with people on my Netflix show and my podcast who are paying hundreds of dollars a month for gym memberships and personal training apps that they barely touched. If you need to cancel them, just call them up. Hey, I'd like to cancel my membership. Are there any early cancellation fees? If so, I'd like you to waive those. If they start negotiating with you, you can decide if their offer is worth it. But I never get guilted into staying. I choose. My money is good money. Number 9, streaming services and subscriptions. Netflix, Spotify, Disney, that meditation app. These charges add up fast. $10 here, $15 there. Before you know it, you're spending more than you used to spend on cable. So here's what I would recommend you do. Start off by listing every streaming service that you're paying for. Most of us don't even realize how many we have signed up for. The ones you use, the ones you love, keep those, but I would recommend being ruthless about cutting the rest. Most of us don't miss something when we don't have it. We just move on to other stuff. Once you have the subscriptions you actually want to keep, you can call your provider or you can even click the cancel button online and you will often see steep discounts. These companies have actually automated it. So if you want to cancel, they will often offer something like 2 months free. If you just click stay. It is quite amazing how their retention departments and even their online service makes it super easy to negotiate. But here's one expense that we haven't covered. Could be an even bigger obstacle to your financial future than the recurring expenses we just talked about. Watch this video next to learn how much that $63,000 truck purchase actually will cost you over the course of your financial life.