Saving Money Blog

Finance Blogs » Saving Money » Jean Chatzky: Avoiding ‘bill creep’
Jean Chatzky

Jean Chatzky: Avoiding ‘bill creep’

By Jean Chatzky · Bankrate.com
Friday, August 22, 2014
Posted: 10 am ET

Editor's note: Jean Chatzky, the financial editor for NBC's "Today" show, is an award-winning personal finance journalist, AARP's personal finance ambassador, and a contributing editor for Fortune magazine. Her eighth and most recent book is "Money Rules: The Simple Path to Lifelong Security." Jean blogs at www.jeanchatzky.com and tweets @JeanChatzky. You can find her on LinkedIn and Facebook, too.

Are you suffering from "bill creep"? You know the phenomenon: You think you've snagged a great deal on cable or Internet or wireless -- and you have. But over time, you add a few gigs of data here, an extra HD cable box there.

All of a sudden your bills are back in the stratosphere. It's frustrating, not to mention unnecessary.

Logan Abbott is president of MyRatePlan.com and WireFly.com, which each help consumers figure out which plans are best for them. In the wireless world, for instance, he notes that the past 18 months have seen a ton of changes in the plan offerings from almost all the major carriers. The result: Cellphone plan consumers in the United States have more choice and power than they've ever had. And new competition for your cable business -- not just from actual cable companies, but from streaming, too -- puts you in the driver's seat.

That said, it's helpful to know which moves to make in order to consistently get the best deals. Here are a few suggestions.

3-tips-to-keeping-bills-low

1. Contact your carriers regularly to ask for discounts

In my house, every six months I'm on the phone with my cable company asking if there's anything I can do to lower my bill. Ditto with my cellphone carrier.

If you've been with the company for a long time, Edgar Dworsky, founder of ConsumerWorld.org, suggests asking specifically for a loyalty discount. Sometimes the customer service representatives will reward you with a statement credit. Other times, there's a specific discount to be had.

2. Don't pay for what you don't use

According to a 2014 Nielsen report, the average cable customer now receives 189 TV channels. But how many do they watch? Just 17.

If you're not watching channels -- particularly the pricey premium ones -- cancel them. We also often overbuy minutes and data. Most people don't need more than 3 GB, says Abbott, and others use far less. Monitor your usage and only buy what you need. If you don't use the Internet often or you just don't care, slowing down your Internet speed can reduce your costs.

3. Buy, don't rent, your HD box

You're probably paying along the lines of $10 per month for each HD cable box in your home. Dworsky isn't. He bought a smart media box, which has HD cable box capabilities. At a regular price of $129 -- and a sale price of $79 -- it pays for itself within a year. Some cable companies will charge a small fee ($1.50 to $2) for an HD card. The downside? You can't get on-demand television viewing. But if this is a secondary set, or you don't use it anyway, it's a no-brainer.

Saving money on your bills doesn't have to take much time. Have any other tips? Share them below, and we may use them in an upcoming story.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
5 Comments
Diane
August 28, 2014 at 9:38 am

@D. I get what you are saying. You can't REALLY negotiate what you don't use. It's a matter of deciding what you are willing to pay for. I personally hate the idea of paying to watch TV. I only pay for internet with my cable company. I broke down and now subscribe to Netflix. Do you know you can watch many PBS programs for free by going to their website? I am in the NY area and thirteen.org has many programs that you can watch, all for free. It may not be all the programs you watch, so take a look and decide.

Teresa
August 28, 2014 at 1:44 am

I do agree that the monopolizing cable company (for me it is in Northern California) draws in customers with great initial discounts that slowly go away after the first year or two, thus raising the monthly bill substantially. There is no real choice. The same thing happened when I lived up in the mountains where cable was unavailable and we relied on satellite t.v. and satellite internet.

I have tried negotiating (nicely) by phone and will continue to try. The last time I did so, I was offered three months free premium channel subscription and the option to take away a ten-dollar internet speed-boosting fee. I haven't noticed the difference in internet speed so it seems that was a good choice.

Kaye
August 26, 2014 at 1:28 pm

Bill creep does not occur because I have added a few more services here and there. It occurs because the cable / phone companies raise their rates after getting you to sign up. In my area (SoCal), the only option is to switch between the AT&T service and the ONE cable company who offers internet. There are NO DEALS to be made. I have gotten rid of all channels and don't have a box! Still my bill gets higher!

Margaret
August 23, 2014 at 10:20 pm

Why was comment deleted twice?
Jean Chatzky uses her position as Finance editor of the Today show (she's on what now? Three or four times a year?) to get lower rates. It's essentially estortion and does not work for you and me Pal. This hack needs to be stopped. Delete me again. I'll go full tilt to other interested parties. Oleson had it right and Chatzky knows it.

D
August 20, 2014 at 1:57 pm

How can you not pay for what you don't use? I use Comcast in Pennsylvania and there seems to be no room for negotiation. I would appreciate any help with this because I think the rates for cable are high and I only watch a few channels (PBS, and some premium channels like HBO). Thanks!

Add a comment

(Comments may take 5-10 minutes to appear)