How to Lower Monthly Bills Substantially

Many people feel helpless when looking at the total of their monthly bills. They just haven't taken the time talk with their spouse or partners and come up with some real solutions about lowering these stressful monthly expenses. It may seem too daunting a task, but all it takes is some organizing and commitment to the decision. The typical monthly bills I'll look at are telephone, cable, utilities, house note, credit cards, insurance, car note and any outstanding loans or bills, such as medical bills.

The absolute very first thing people can do is call their credit card companies and ask to have their rates reduced. This is very do-able. I know because I had mine reduced. One of the reps I called even switched me to a zero interest rate for 9 months just to keep me as a paying customer. It costs these companies millions of dollars to get new customers every year and they will usually do anything within reason to keep the good customers they have. Don't be rude; just be insistant. If they won't budge, go online and hunt for cards with better rates and transfer old balances to those.

What about cable or DISH bills? For people who make their living at home or work a lot on their computers, Cable is a necessity. The phone certainly is. But there are some ways to reduce the costs of these. I know, for example, that Netzero is a company offering very low rates for their high-speed internet service. And it can replace the cable entirely. For people using cable for their TV viewing, there is only the alternative of switching to fewer stations on your billing. Often, we pay for many things we really don't use that much. Take the movie channels. I know that the satellite and cable services want people to choose the large packages with lots of movie channels and even sports included every month, but are they really worth it? If you aren't viewing many movies, then you could probably eliminate all the movie channels and simply subscribe instead to netflicks to have CDs mailed to your home anytime for a charge of below $10. And that way the movies ordered would be ones that you choose and not those the cable or satellite company broadcasts over and over each month. Cutting down on some of these items could save up to $100 or more a month.

There are some choices to be made about telephone service too. Anyone who has both a cell phone and a land line is probably paying more than they have to. If the cellphone is just used for occasional calling around town Tracfone and Cricket offer really bargain prices for a fixed low fee and no contracts re involved. This alone would take a magazine-sized article to write about in detail, but the basic idea is to know in advance what the phone is used for most, how often, and how much long distance is involved. Chances are, many of the services being paid for are not necessary. Even if you cut back by just $50, it's that much less that is going out each month

Utility bills can be whittled down substantially by using caulk to plug drafty leaks, turning down the thermostat to 62 degrees and turning the hot water heater down. Remember to turn off the pilot to unused gas logs, and to service the AC and furnace every year and change filters regularly. And always wear warmer clothes inside in the winter. Cutting utility costs can really save money. Monthly bills can be cut by 2%-3% per month alone for each degree the thermostat is turned down. Add this savings to others from the other measures and we're looking at reducing monthly payments into the 100s of dollars.

House and car notes are not so easily reduced. Refinancing is an option for all homeowners these days, since interest rates are still quite low. Do not succumb to the temptation to get one of the interest only loans or any type of adjustable rate mortgage. Only go for a fixed low rate loan that is at least 3 points lower than the one you're paying now or no money will be saved. Don't refinance at all if there is a point or more to pay as well as finance charges. A little calculation should make it clear if refinancing is going to save money or not. For those who are seriously facing losing their homes from unforeseen calamities like illness or job loss, HUD has some help for avoiding this. Use their web site and draw up a plan.

Insurance is really something that should be shopped out. I know that auto and homeowners insurance are very competitive. Geiko, for instance, advertises its competitive pricing but don't just take their word for it. Go online and shop for the best rates with the best packages. Make sure to get a better rate for the same coverage you already have. Now, health insurance should be very carefully shopped. It's too important to be sloppy on this issue. I can say that the higher the deductible, the less the monthly payments, and unless someone is getting on in years or has a family history of disease or health risks, it's wise to raise the deductible substantially and shop for the best companies. Consumer reports should have plenty of information on this in a local library and it's well worth looking into. It could mean $100-$200 off a family's insurance bills.

Many people don't realize that if they have some serious medical expenses to pay for that most hospitals and even some clinics and doctors will allow the total of what's owed to be broken down into affordable monthly payments. It's true. It does take some calling around, but I've done it and owe only $30 a month on a $3600 bill from a recent hip surgery.

Some last tips on buying "stuff." I now shop for staples at the local dollar stores and it has saved me a huge amount. I'm talking about at least $100 per month and probably more like $150. I also go to SAMS Club and make volume purchases of frozen meats and canned goods. I stopped taking the daily paper and now only take it on weekends--another saving of about $15. Again, it was something I wasn't even really using. I also look online for the cheapest gas prices in my town by googling to see where the best prices are located each time I fill up my car. Much of the savings advice is common sense and it takes some time and concerted effort, but if you could possibly save hundreds each and every month, wouldn't you do it? For some people it could mean the difference between economic disaster or stability. Just make sure that the whole family's in synch and all working together to make it happen.