Written by: Kristen Jowers, MS, and Nichole Huff, Ph.D., CFLE
In financial counseling sessions and trainings, we routinely teach core financial skills, such as budgeting, debt management, and identifying and stopping spending leaks (e.g., limiting convenience purchases and auditing subscription use). We also empower clients to negotiate major purchases like vehicles, housing, and sometimes even salary or remote-work options for spouses. Bill negotiation is another practical financial skill we can empower our clients with.
Traditional bill negotiations can look like requesting new due dates from lenders to align with the client’s pay schedule. Clients can also negotiate debt, including creating a payment plan for medical bills and applying for an income-driven repayment plan for federal student loans. One less common bill negotiation practice is calling to negotiate the cost of recurring expenses, such as phone, cable, and bundled services. This bill negotiation strategy can reduce monthly bills without changing services or canceling accounts, often freeing up resources for increased savings, debt repayment, or other priorities.
Why Bill Negotiation Works
Companies are motivated to retain their existing customers. It generally costs a business more to acquire a new customer than to retain an existing one. Some businesses have customer retention or loyalty departments that were created with this purpose in mind. Customers who ask for better rates often receive them, particularly when they reference competitor pricing or loyalty history.
Before Making The Call
Preparing in advance strengthens the caller’s position. Encourage your clients to:
- Gather their account information: know what they are paying, their service details, and how long they have been a customer.
- Check competitors: see what others are offering so they can bring that up on the call. Use new customer pricing as an anchor if other competitors are not available.
- Be ready to ask for retention/loyalty departments: representatives in these departments usually have more flexibility.
Talking Points You Can Share With Clients
Normalize negotiation and give clients some ideas of what they can ask for when they call.
- I’ve been a customer for [X years], and my current bill is [amount]. I saw a competitor offering [specific deal], and I’d really prefer to stay with you. What retention or loyalty offers are available to lower my monthly bill?
- I received a quote from [competitor] that’s $[amount] less than my current premium. I value being with your company. Are there any discounts you can apply to match or beat that rate?
- I’m calling to review my current rate. Can you check if there are any military discounts, bundling promotions, or loyalty price adjustments available to reduce my monthly bill?
A Few More Negotiation Tips
If the first person they talk to can not help, ask to be transferred to the customer retention or loyalty department. If they are told there are no discounts available, encourage clients to respond with something like: ‘That’s disappointing — I really enjoy the service, but the current price feels high compared to competitors. Is there anything your retention team can do?”
Clients should also be reminded to ask about available discounts, such as multi-policy, safe driver, military, or association discounts, when applicable.
When Should Clients Negotiate Their Bills?
There is no specific time of year when bill negotiation is more or less successful. Instead, service members should review their rates and offers at least annually to ensure they are still getting the best deal. Even if the initial attempt is not successful, rates and promotions change frequently. Try again the following year or when the contract term ends. Encourage clients to negotiate their rates around the same time each year to build the habit. When the negotiation is successful, clients should always confirm whether the new rate is promotional and, if so, when it expires.
Bill Negotiation Services
Finally, it is important to caution clients about third-party bill negotiation services. These companies typically charge a percentage of the savings they secure. In most cases, negotiating bills directly is just as effective and free, aside from the time spent making the call.
To help clients stay organized, encourage them to use FINRED’s Spending Plan Worksheet to map out income and expenses. When money is tight, service-specific Relief, Aid, and Mutual Assistance resources can help fill short-term gaps. The CFPB’s bill calendar is another practical tool to track due dates and prioritize payments when funds are limited.
Cover photo AI-generated using Gemini
