Bill busters

With more than 12 million people out of work the U.S., it's nearly impossible for many to manage their household budget. With credit card bills and even past due utility bills spiraling out of control, how can you keep up? Especially, if you lost your job or even lost some of your pay. There are ways you can try to cut costs by negotiating with your creditors and it's not as hard as you might think.
Mona Richardson is a photographer holding on during this recession, so every penny counts. A better deal on cable, phone or her credit cards sounds very appealing. She spent a lot of time last year trying to work out a problem with a utility company.
'”Usually you have to go through the whole story five times, but usually, I just keep asking for the manager over the next person,” said Richardson.
If you want to negotiate a bill, speaking with the right person is key to your success. Most industries are feeling the pinch of the recession and want to keep as many customers are they can. Yes, even credit card companies are more willing to listen to your requests.
"If you want to save money, a great way is to evaluate all the bills that come in on a monthly basis,” said Angie Hicks of Angie’s List. “Whether it’s your phone bill, your cable bill or your internet service, try to negotiate a better rate. Find out what kind of deals they are offering new customers and call and see if you can get the same deal.”
Utility bundling--combining your phone, cable and internet saves money. You can also ask for a deal on any introductory rates they're offering new customers.
"Last year, I actually had some issues with my electric bill so I tried to work out a deal and it was a really big headache,” said Richardson. “I got behind on payments and suddenly had this huge deposit and really didn't get a lot accomplished with the electric company.” After multiple calls, Richardson said she just paid the bill.
She would however, like to see lower interest rates on her cards. Credit card companies are implementing blanket rate increases on customers, regardless of their credit history. If the interest continues to climb, how do you ever get out of the debt spiral?
Richardson tried out the negotiating tactics on one credit card and saved 20 percent on the balance of the bill. She planned to try the tactics on her other bills.
Follow these guidelines from Hicks to negotiate your bills:
-Speak with a person that can make a decision right then. The Retention Department is your best bet because they do not want to lose customers
-Be ready to walk away. Check ahead of time the costs involved in changing utility companies. With credit cards, you can transfer balances to a card with better rates.
-Look for the hidden fees and service charges and inquire why they exist and can they be removed.
-Make sure you get the name and employee number of the person you speak with. Then, monitor your bill to make sure they follow-through with their promises.

If you would like assistance with negotiating with creditors or with your overall budget, you can ask questions Wednesday on scnow.com during our Ask An Expert online chat. Keywords: Ask An Expert.
This week’s guest is Toby Smith, a certified credit and budget counselor.