How to get a better deal and save $1600 on household bills
AUSTRALIAN bargain bill hunters are having a lot of success, saving an average of $1600. It’s not hard to achieve, and requires these steps to be taken.
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EXCLUSIVE: Bargain hunters are more likely to haggle on whitegoods than financial products and as a result they are missing out on huge savings.
And of those who are savvy and sniff out a better deal, three in four have success.
But for many Australians, asking for a better deal can be uncomfortable and many don’t know how to do it.
Just last week big bank Westpac announced they were hiking variable rates so it’s critical customers take immediate action to secure a better deal.
Comprehensive research by financial comparison website Mozo surveyed more than 3600 Australians and asked them if they demanded a discount on products including their mortgage, utilities, car and home insurance and whitegoods.
The ones who did ask saved an annual total of $1600.
Mozo spokeswoman Kirsty Lamont urges consumers to be confident when asking for a discount and a catalyst for this should be when your next bill arrives.
“When it comes to insurance don’t just let it roll over, always make sure you check the rate your insurer is quoting you and compare,” she said.
“Give them a call and see if they can do better than the premium they have quoted you.”
In terms of having success, of those who did ask for a discount, getting money knocked off whitegoods was the easiest, following by car insurance and energy.
MORE: LENDERS HIKE UP VARIABLE HOME LOAN RATES
MORE: THE DANGERS OF REVERSE MORTGAGES
Rising Tide Financial Services’ managing director Chris Browne said it’s important to be firm but not rude when trying to score savings.
“If you are trying to get a better deal with your existing bank make sure you do your homework,” he said.
“Know what their competitors are offering and be prepared to leave if they don’t beat it.”
And consumers should be aware — service providers reserve the best deals for the savviest customers so don’t hold back on asking for a discount.
Ms Lamont said regularly asking for a cheaper offer is key to making sure you are always on a competitive deal.
“When it comes to your home loan you should be trying to negotiate a better deal at least every couple of years,’’ she said.
“This is particularly the case if you get a rate rise you don’t just have to take it.
“You can call up your lender and ask them to do better.”
Banks are continuing to slowly push up interest rates on many owner occupier and investor deals.
It’s critical that customers on a variable rate pay attention to see if that rate has quietly crept up without their realising.
And insurers are widely know for slugging existing policyholders while giving new customers the best deals, so it’s vital not to automatically renew any policy before shopping around.
HOW TO HAGGLE
— Check your latest financial product statement.
— Do an online comparison to see how your charges compare.
— If you can get a better deal elsewhere phone up your provider.
— Demand they give you a discount or you will leave.
— If they don’t come to the party be prepared to switch.
Originally published as How to get a better deal and save $1600 on household bills