SCOTT DETROW, HOST:
When you get a bill in the mail, whether it is from your doctor or the electric company, the dollar amount you owe feels set in stone, but is it? It turns out a lot of our expenses can be negotiated. It just requires knowing a few tips first. Marielle Segarra, host of NPR's Life Kit, is here to explain more. Hello.
MARIELLE SEGARRA, BYLINE: Hey, Scott.
DETROW: Honestly, I struggle with this idea. Like, we can negotiate our bills?
SEGARRA: Yeah.
DETROW: This is a fair thing to say?
SEGARRA: Yeah, we absolutely can. I was also surprised when I learned about this, but it is true for medical bills, for monthly bills - from your internet provider, for instance - for one-time purchases, even for existing debt...
DETROW: Yeah.
SEGARRA: ...Like, on a credit card.
DETROW: All right. Well, let's take medical bills. How do you negotiate them?
SEGARRA: First off, I want to say, when it comes to medical bills, you should see if you qualify for financial assistance or charity care before you even start the negotiation part. Nonprofit hospitals are required to offer this, and a lot of for-profit hospitals do it, too. It's based on your income, and you could have your bill lowered or eliminated entirely. So you just want to call the billing office and ask about that. But if you don't qualify, then, yeah, you can negotiate. Call the billing office, ask them for the settlement amount. Those are some keywords to use...
DETROW: OK.
SEGARRA: ...What it would take to close out the bill that day. Often, they'll give you a discount of 20 or 30%. And you can also just tell them, hey, I'm having trouble paying, or this bill seems really high. Can you lower it? And this is generally the mentality with getting a discount on anything. Brian Vines from Consumer Reports put it to me this way.
BRIAN VINES: You have not because you asked not.
DETROW: I mean, a good point. So let's keep going. Any tips for negotiating other types of bills?
SEGARRA: Yeah. So if you have a monthly bill, like, let's say, your internet or phone provider, call them up, ask if they can give you a discount. A lot of the time, it's that simple, right? They often have promos that they can give you for a year or two. And then when that time is up, you just call and ask again. And this totally worked for me recently, like, a couple of weeks ago. And if you're making a purchase in a store, take out your phone - maybe you already do this - check the prices for the same product from other retailers at other stores, and then ask a sales associate if they'll do a price match. And Brian Vines from Consumer Reports says, you know, be nice to the sales associate. Don't act like you're entitled and they owe you something.
VINES: Pack your patience in a good disposition because people who are working in these stores also understand that we're all in the position right now where any savings means something.
DETROW: Let's get to one other thing you mentioned at the top, that you can negotiate existing debt. Tell me more about that.
SEGARRA: Yeah, you can. So one thing that helps in any negotiation is leverage, right? Do you have something that the other side wants? A credit card company, for instance, wants your business, and if you owe them money, they want you to pay them back. So they will often work with you to make that possible. You can ask them for a lower interest rate. You can ask them to move your payment due date to a more convenient time of the month, like, right after you get paid. And you can also say, hey, look, I'd really love to stay with y'all, but I have this other offer for a credit card at whatever percent interest. Can you match that? Because if they don't, you could roll over your debt to that lower-interest card, and they would lose you as a customer.
DETROW: And I guess, Marielle, it feels like sometimes you could just ask, and it works, right? And probably other times, you need to kind of show your receipts or show those other options that they're real.
SEGARRA: Yeah. And that's known in negotiation terms as your BATNA. It's your best alternative to a negotiated agreement - basically, what you're going to do if they say no. Revealing that could help you get what you want.
DETROW: That is Life Kit host Marielle Segarra. Thank you so much.
SEGARRA: Thank you.
DETROW: And if you want more tips on saving money, you can find them at npr.org/lifekit.
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