negotiating

6 Negotiation Tips for Introverts

Rachel Slifka — Tue, 30 Oct 2018 08:00:12 +0000

Some people are natural negotiators. They are the smooth-talkers who always manage to say the right thing to get exactly what they want. Where most of us are at least somewhat fearful about the idea of negotiation, these people seem to enjoy it.

Negotiating can be especially challenging for introverts, not because they lack confidence, but because negotiations can have a confrontational tone, and often require some posturing and bluffing — which are not communication tools introverts typically use. Though introverts may be less comfortable with the act of negotiating, they have many strengths that can aid them in the process. (See also: 6 Smart Money Habits of Introverts)

No one is born a good negotiator. Negotiation is a skill, and it takes a lot of practice. And here are six ways introverts can become stellar negotiators. (See also: 8 Negotiating Skills Everyone Should Master)

1. Research and prepare

Introverts tend to flourish when they have researched and prepared in advance. By researching, you armor yourself with the facts. This is vital, because you no longer have to rely on your opinion or emotions, both of which can be difficult for introverts to openly share.

Figure out what the going salary is for someone in your location and with a similar level of experience. Collect data from multiple reliable sources. Then create a list of everything you've accomplished in the last year. If you've saved the company a significant amount of money, for example, be sure to include that in your documentation.

2. Consider the outcome

Think about how the other party might potentially respond to your negotiation request. For example, if you are asking for a raise, how will you respond if they agree? What if they disagree? What if they completely blow you off?

Assess every possible outcome and how you will handle it. Consider what you're asking for. Do you have a bottom line? What would be the bare minimum you hope to gain from having this conversation?

Nothing is worse for an introvert than being thrown for a loop, so be realistic and plan for the unexpected.

3. Cut to the chase and ask

So many opportunities are missed because people aren't sure how to ask for what they want, or are too afraid. Share your data, get to the point, and ask for what you want. If the other party doesn't agree with your terms, it is likely because they either didn't believe the facts, or they don't have enough resources to sustain your claim. Either way, you never know what you can gain unless you ask.

4. Show them how it's mutually beneficial

Make your case for why you deserve what you're asking for, but also be sure to include what they'll gain by giving it to you. A successful negotiation will showcase how this proposition will benefit both parties. If it's a promotion you want, for example, point out how you'll increase the bottom line, or improve the company in this new role. (See also: 6 Reasons Introverts Make the Best Employees)

5. Don't forget to pause

Typically, introverts love to take their time to think about what they're going to say before they say it. Because of this, any long pauses or any unexpected questions can instill a fear of the unknown. Long pauses, however, can be used to an introvert's advantage.

If someone asks you a surprising question, don't hesitate to pause before you respond. While you're gathering your thoughts, the other person may even offer further explanation or clarification, buying you extra time to make your point. (See also: 7 Everyday Situations That Introverts Ace)

6. Practice, practice, practice

Rehearse everything, from how you will enter the room, how you'll greet the other party, and how you plan to take hold of the conversation. Avoid going into in-depth explanations as to why you want what you want. Stick to the facts.

It might feel somewhat silly to practice your negotiation tips, but the more you rehearse, the more your confidence will grow. Notice if you're fidgeting, stuttering, or speaking unclearly. Remember, keep your responses short and to the point to clearly communicate what you're asking for.

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This article is from Rachel Slifka of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Questions to Ask Yourself Before You Ask for a Raise

Paul Michael — Mon, 22 Oct 2018 08:00:12 +0000

When was the last time you got a big raise? We're not talking about the 3 percent raise you should get every year to keep your salary in line with inflation — we're talking about a noticeable pay bump to reward you for all your hard work. Has it been a while?

You may feel like you're long overdue for that financial reward, but asking for a raise without first recognizing if the timing is right can set yourself up for a disappointing answer. So before you ask for a raise, ask yourself the following questions first.

1. Is my current salary where it should be for my position?

Salaries for identical roles vary from company-to-company, state-to-state, and country-to-country. You may not have had a significant raise in many years, but that doesn't mean you should automatically get one. Take a look at a website like Salary.com and search for your current role, your location, and your years of experience. Don't forget to add in any benefits and bonuses you may get. Now, where do you fall on the chart?

If you're right at the top of the bell curve, congratulations; you're getting what the majority of people in your position are getting. If you're to the right of that peak, you're actually earning more than average. It's only if you fall significantly left of center that you should feel a large raise is appropriate. (See also: 5 Times You Should Demand a Raise)

2. When did I last get a raise?

Again, this is going to vary depending on your profession and the current state of your industry. But usually raises are given out annually, so if you had one 10 months ago, you shouldn't expect to get a warm reception when you ask for more money. If it has been many years since you had any kind of raise beyond the meager 2 to 3 percent, and you have an excellent work history, you are definitely right to approach your supervisor and talk about money.

3. When did I start this job?

That could be read one of two ways; either your start date with the company, or the date of your last promotion. Either way, you should really tread carefully if you start asking for more money without a year of experience in that role under your belt.

Now, you could find that certain promises were not kept with regards to commissions, bonuses, benefits, or other ways you were told you'd be compensated. If that's the case, make the reasoning watertight. You took the job based on income you're not receiving, so you would like a bump in pay to make it right.

4. Do I really deserve the hike in salary?

Of course you do, right? Well, maybe not. A fat raise usually accompanies a promotion, more responsibility, or the kind of performance that makes you indispensable. Look at what you've done since the last time you got a raise. Have you been good at everything, or have you been outstanding? Did your performance meet the expectations set by your manager, or did it exceed them? Did you hit deadlines and budgets on the head, or did you come in under budget and ahead of schedule?

Sadly, "good" is just not good enough for most companies these days. They expect a dazzling performance month after month before a raise is on the table. (See also: 9 Ways an Annual Self Review Can Boost Your Career)

5. Do I really want more money, or more job satisfaction?

Money makes the world go 'round, but sometimes we find ourselves wanting more money because the job isn't giving us any other reason to show up. The role may have become stale, or the tasks uninspiring. We're not fulfilling our potential, and to compensate, we want more money in exchange for the torment we endure.

If your motivation for a raise is that the job just plain sucks, do you really want more money to stay in a role that you don't like? Is there a better solution? How about a move to a different department, or asking for more challenging opportunities that will help you grow your career? Money isn't always the answer. (See also: 5 Reasons a Big Paycheck Is Not Worth Staying in a Job You Hate)

6. How's my company doing?

Unless you've been hiding your head in the sand, you should have a good idea of how the company has been doing for the last six months to a year. Is it in a good place, a great place, or have there been troubles?

For a start, any kind of financial issues are going to make your request for money come off as tone deaf. Layoffs, cutbacks, and salary cuts spell trouble for sure, and asking for a raise when everyone is struggling is not going to go over well. Even if you believe you're being underpaid or really deserve the extra money (for example, if someone was laid off and you're doing twice the work), you must be careful how you broach the subject. Before going to the boss, put feelers out with human resources or someone in finance. (See also: The Absolute Worst Ways to Ask for a Raise)

7. Can I justify a pay raise?

"Because I deserve one" is not a good answer to the question, "Why should we give you a raise right now?" In fact, you shouldn't even let your boss get to that question. Instead, make a case for your raise right out of the gate. Start the conversation with something like, "I've been doing a lot of thinking, and I believe I deserve a pay raise for these reasons." Then, clearly and confidently explain those reasons. Don't be pushy, arrogant, or entitled.

Use specifics in your argument. "I've been doing a great job" is way too broad. Instead, list performance figures, additional hours worked, weekend work, increased sales, increased customer satisfaction, or whatever else counts as a big plus in your role. If you're having trouble thinking of any specifics right now, it's probably not the time to ask for a raise. (See also: How to Negotiate a Raise Out of the Blue)

8. How much do I ask for, and how much will I be happy with?

The two numbers are not the same. In fact, the second will probably dictate the first, because in the negotiation game, it's always better if you set the "anchor" point rather than the boss.

Let's say you want no less than a $5,000 raise. You shouldn't ask for $5,000, because it's way too easy for the boss to talk you down from that price point (they sure won't be going up from it unless they're worried you're about to quit).

When you're asked how much of a raise you'd like, go higher than your bare minimum. Maybe you ask for $10,000. If he or she says yes, great! If not, you can start negotiating back down. When it gets down to $5,000, you can accept and be happy. The boss will also be happy that the figure is lower than what you said you wanted. (See also: This Simple Negotiating Trick Puts Money in Your Pocket)

9. Will I accept other benefits instead of money?

Again, is money what you really want, or would you consider other offers that aren't directly tied to salary? For example, what if you're given an additional five vacation days per year? That has real value, especially nowadays when we all seem to be working harder than ever. If not that, would you take an offer that lets you work from home one day per week? Or how about getting additional benefits you may not be getting now, like a higher match for your 401(k), or paid conferences out-of-state (or even out of the country)? Consider everything that you could be offered instead of money, and have them in your back pocket if your request is flat-out refused. (See also: Didn't Get the Raise? Ask for This, Instead)

10. What's my plan if I'm turned down?

Be prepared for the boss to say no. You shouldn't expect to get a raise, or the amount you believe you deserve, even if you think it's overdue. If you walk into the room thinking it's in the bag, and don't have a plan for rejection, things could go badly. You don't want to get upset, angry, or walk out and slam the door.

Instead, thank your superior for his or her time, and ask when a good time would be to revisit the issue. This leaves the possibility of a raise still in the air, and allows you to try again at the appropriate period. Then, go back to doing what you do without holding a grudge or lowering your performance. Work hard, work smart, and that raise will hopefully come soon enough.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Fine Art of Negotiating With Your Financial Institution

Annie Mueller — Wed, 06 Jun 2018 08:00:22 +0000

We recently sold our house to buyers who were eager to move in. No problem; we scheduled a quick closing date and began making arrangements. We called the bank to request a payoff statement, something that's usually accomplished in a matter of minutes.

"Sure," they said. "It will be there in three days."

That seemed a little weird to us, but we had four days until the closing. We called the next day and were told it would be there in 24 hours. "Even better," we thought. We were so naive.

The night before the closing was scheduled, the title company let us know they still hadn't received the payoff statement. By this time, the bank's service center was closed. The next morning — the day of the closing — we were on the phone once again.

"It's in the queue," they said this time. "It will be sent soon, but it's impossible to know when, exactly."

The bank rep told us there was no possible way to send the statement immediately. We were polite but insistent. Finally, after over 30 minutes of being told it was impossible, they transferred us to a manager.

"What do you need? Your payoff statement? Sent immediately?" she asked. "Sure, no problem. I can do that right away."

The title company had the statement in less than five minutes.

Why we're bad at negotiating

I share this little story with you because people are often intimidated by financial institutions. There's complicated terminology — legalese, corporate jargon, and specific "money terms" that sound like you need a doctorate to understand them. Plus, people often feel out of the loop when it comes to particular money matters, which can lead to hesitation and uncertainty. If you're not sure of your own financial footing, how are you supposed negotiate with the pros?

But it's important that you learn. If you don't negotiate, chances are every agreement you enter with a financial institution will favor that institution far more than it favors you. Insecurity about your poor credit, past financial mistakes, or a current bad hair day can make you feel like you don't have the right to ask questions or stand up for yourself.

The consequences of not negotiating can be dire. In our little story, if we hadn't pushed until we got what we wanted, we might have lost the sale of our house. So let's learn how to negotiate. (See also: 8 Negotiating Skills Everyone Should Master)

Get to the right person

Negotiating with a financial institution is a lot different from negotiating with an individual — like, say, your landlord. Individuals make decisions based on many factors. They could be influenced by something as simple as how good — or bad — of a mood they're in. It all comes down to the person.

Institutions operate, presumably, on a set of rules. The individuals within the institution are motivated to adhere to the rules because it's safer for them. The less secure they are in their role, the less willing (and sometimes able) they are to negotiate.

The workaround is to go as far up the chain of authority as you can when negotiating. Generally, the more authority an individual has within a business, the more job security they have and more freedom to make decisions. You want to work with someone who doesn't feel threatened by your request. If you feel that the person you're working with is unable or unwilling to meet your terms, keep asking for the next person up the ladder.

Find the real rules

There are rules, and then there are the real rules.

Generally, the first people you talk to are working with the rules. There are lots of these rules, and most of them sound like "No." They are designed to protect the institution from loss. They are written into the scripts used to train the people who work there.

To negotiate effectively, you'll need to keep asking questions until you push past the script and find the real rules. For example, you might be told, "There's no way we can offer that kind of discount to you; it's against our policy." This is your cue to ask for a supervisor; someone who can override the policy.

When you get to that someone, you find out the real rules, which might be quite different: "Well, we don't usually offer discounts like that. The only way I could do that is if you sign a two-year contract with us." Now you know the real rule, which is, "Only offer deep discounts to get long-term contracts."

Once you know the real rules, you can use them in your negotiating: "I understand you need to get a long-term agreement in order to give me the discount I want. But that's a big commitment for me. I'm interested, but I'll need a lower interest rate in addition to the discount." (See also: 10 Negotiation Mistakes That Will Destroy Your Deal)

Be excruciatingly courteous

Bad manners really won't get you very far. Good manners alone will not win your negotiation, of course. But they can open the door. They can help you get to the right person. They can help you extend the conversation so you're able to see your options.

Good manners can also keep you from having to start the negotiation process over again. If you are kind and courteous when you speak with someone, they're more likely to do what they can to help you. They may not be the person with the authority to make the ultimate decision, but all help is valuable.

Being courteous can get you a direct phone number to call rather than the catchall service line, information on general policies that will help you negotiate better, and notes left in your account which get passed up the line with you. These little things will all nudge you forward toward your goal.

Prepare to repeat yourself

You will have to repeat yourself. Over, and over, and over.

Really, negotiating with a financial institution is a test of patience and how many times you can say the same exact thing without snapping. Parents of young children have a real advantage here.

If you want to talk to a person with more authority, you may have to ask five times. That's because of the value at stake in any individual's time. Entry-level people get paid less. Their job is to maximize the gain for the institution and minimize the (potential) loss. It's well worth it for an hourly worker to sit on the phone with you all day long if they can get you to agree to their preferred terms by the end of the call.

And most people will give up — either on getting to the right person, or on getting to an agreement that benefits them — far too soon. Be clear about what you're asking, and be prepared to ask for it over and over.

Remember that you're in charge

There are many scenarios that can involve a negotiation. Maybe you need a business loan, or you're looking for a better interest rate on an existing one. Maybe you're looking to buy or sell a property. Maybe you need to negotiate payment or contract terms. In all of these cases, the institution will make more money by doing business with you than by refusing you. Some interest is better than no interest; any payment is better than no payment. You hold the power here, even if you feel like you are in the subordinate position.

If they won't meet your terms, go elsewhere. Be prepared to do so, rather than just making empty threats. Knowing that you have options is important. When you know you have other avenues, you can feel more confident. And that will make you a better negotiator.

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Negotiate Your Rent

Kat Tretina — Wed, 04 Apr 2018 08:00:07 +0000

When I moved from Pennsylvania to Florida, my husband and I looked everywhere for an affordable apartment. We finally found the perfect place that was within budget, and for that first year, it was wonderful.

Then we got our renewal notice and found out our rent would go up by over $250. That would have broken our budget. I thought about moving, but the high cost of relocating scared me away. Instead, I decided to negotiate with my landlord. It worked; we agreed on a $100 increase instead of $250. By just taking 10 minutes to discuss our lease, I saved us $1,800 over the course of the year.

When you're renewing, you have certain benefits over prospective tenants. Negotiating rent might sound impossible, but it can be done.

Look at comps

Research comparable rental units in the area that offer similar features and perks of your current apartment. This way, you'll get an idea of what the fair market value is where you live. You might find that your rent is the same, or even much higher, than it would be with a newer unit. That finding can give you significant bargaining power. (See also: 10 Best Tools for Finding an Apartment on the Cheap)

Review your rental track record

You might think your landlord would be unwilling to negotiate, but you'd be surprised. Good tenants are hard to find, and keeping a reliable tenant is much better than having an empty unit sit on the market. If you've been a good tenant — always paying rent on time and never causing trouble for the property manager — you will have more negotiating power.

See how many units are available

If you live in an apartment complex or if your landlord has several rental properties, see how many units are currently available. If your landlord has several openings, they're more likely to do what they can to get you to stay. Otherwise, they risk letting another unit sit unused, which means losing even more money.

Talk to your landlord

Once you've done your research, talk to your landlord. You can talk in person, but if you'd prefer, you can also send an email (that's what I did!). Below is a template you can use:

"Dear [landlord],

I received the lease renewal for my unit, and I'm concerned about the price increase.

The new rate would cost me an extra [$X] per year. I looked at other rentals in the area, and several complexes offer more features and larger units at [$X] price, which is much cheaper than the increased rate for my unit.

I believe I've been a good tenant; I've never missed a payment, and there's never been a single noise complaint or any other problem. If there's any way we could make it work, I'd like to stay here, but the price increase is more than I can reasonably afford.

Could you compromise on the rate? I could afford [$X]; that's the top of my budget, but it would be worth it to stay in my home."

Whether you rent a home from a private individual or lease an apartment from a big company, you can negotiate your rent. By doing your research, you may be able to get a lower rate.

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This article is from Kat Tretina of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Things You Can Negotiate When Buying a Home

Dan Rafter — Tue, 20 Feb 2018 10:00:06 +0000

You've found the home of your dreams. Now comes the hard part: You need to make an offer that the sellers will accept. Of course, making a full-price offer will help you land almost any home. But what if you want to negotiate? Will this turn off the homeowners and scuttle your chances?

Not necessarily. Yes, many parts of the country are in the middle of a seller's market, giving homeowners an advantage in negotiations. But this doesn't mean that buyers can't negotiate on everything from move-in dates to selling price to repairs.

Don't be afraid to ask for concessions from sellers. Sellers might make a counteroffer, but if you're making reasonable requests, the odds are that they won't suddenly break off negotiations.

Here are the things you should feel comfortable about negotiating when buying a home.

1. Price

The first thing buyers think of when it's time to negotiate? The sales price.

Maybe you love the home you've just toured, but you think it's priced a bit too high. When it's time to submit your offer, ask for a lower sales price. Sellers can reject your offer, accept it, or make a counteroffer.

If you get a counteroffer, you now have a choice to make: Do you accept the new price offered by the seller, or do you try to shave a few more dollars off the price?

Don't be shy about asking for a lower asking price. But do your research first. Work with your real estate agent to determine what similar homes in the neighborhood are selling for and make an offer that fits within these comparable listings. Don't lowball the sellers with an unreasonable offer; that will get negotiations off to a bad start. Some sellers might simply end negotiations with you immediately. (See also: Ask Yourself These 5 Questions Before Buying a Home)

2. Closing date

Maybe you need to move into your new home quickly because your apartment lease is expiring. Or maybe you'd like a later move-in date, after your children finish the school year. You can negotiate the closing date of your home sale.

Closing day is when you, your real estate agent, and officials from your title insurance company, along with everyone representing the home's sellers, meet to sign the papers and present the certified checks that make your purchase of your new home official. When negotiating your home sale, you can request a quicker or a later closing date.

Don't be surprised, though, if the home's sellers push back. They, too, have their own preferred date when they want to move. You might need to negotiate some back-and-forth before settling on a closing date that works for everyone.

3. Closing costs

Buying a home isn't cheap. You'll have to pay plenty in closing costs, the fees that your mortgage lender and other third-party providers — such as title insurers — charge you at the closing table. Closing costs can vary, but you can expect to pay from 2 to 5 percent of your home's purchase price.

You can, though, request that the home's sellers pay for these closing costs. This has become a more common factor to negotiate as the price of homes has steadily risen.

Sellers have no duty to pay your closing costs, of course. But many will agree to pay these costs out of the profits from their home sale as a way of keeping a real estate transaction alive. (See also: Here's What's Included in a Home's Closing Costs)

4. Major appliances

Some sellers plan to take their refrigerators, washing machines, and dryers with them when they sell their house. But maybe you'd like them to leave these major appliances behind. After all, you might be cash-strapped after buying a home. Having these pricey appliances in place when you move in could be a boon to your bottom line.

Many sellers won't object to leaving appliances because they weren't planning on taking them anyway. It's important to get in writing what stays with the home after the sale and what goes.

5. Repairs

After your offer is accepted, it's time to schedule your home inspection. An inspector will tour the home you are buying and point out any potential problems. If the problems are too severe, you might be able to walk away from the sale without losing your earnest money deposit.

But often, inspectors find smaller problems with a home. Maybe a furnace is nearing the end of its expected life, or maybe the kitchen sink's faucet drips. After viewing your inspection report, you can request that the sellers repair these more minor problems before you close on the home. You can also request that the sellers provide you a financial credit at closing so that you can hire a contractor to fix the problems on your own.

To keep the home closing on schedule, many sellers will agree to these requests. (See also: Thinking of Skipping the Home Inspection? Here's What It Will Cost You)

6. Furniture and other large fixtures

Love that swing set in the backyard? Or maybe you think the oversized couch in the living room is perfect for your new home. You can always request that the sellers leave specific items behind.

Some sellers will be happy to leave behind, for example, a swing set that's pounded into the earth of their backyard. Others might plan to purchase brand-new furniture after they move, so won't mind leaving behind a couch or love seat.

You never know unless you ask, so don't be shy about negotiating over these items.

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Financial Skills to Master Before You Graduate

Kentin Waits — Mon, 12 Feb 2018 09:00:06 +0000

With graduation only months away, you can finally see light at the end of the tunnel. After four (or more) long years of study, you're well-prepared to embrace adulthood, independence, and professional success.

But are you really? Before you don that cap and gown, make sure you know the ABCs of personal money management. It could be the most important course you'll ever take. Here are the financial skills to master before you graduate.

1. Basic budgeting

If you can't build and stick to a basic budget, you risk having your life divided into a series of stressful 30-day cycles. Bills may be late, savings an afterthought, and credit cards could become an absolute necessity. Avoid this bleak fate. Set up a practice budget using the envelope system or get acquainted with online money management tools like Mint. (See also: Build Your First Budget in 5 Easy Steps)

2. Living within your means

Consistently spending more than you make is the cornerstone of bad financial decision-making. You'll have no surplus money to invest. You'll rack up credit card debt (harming your credit scores in the process). And, you'll live in a constant state of stress. Create a realistic budget, stick to it, and don't pad your lifestyle with easy credit. (See also: How to Escape the Paycheck-to-Paycheck Cycle)

3. Paying your bills on time

Credit scores affect everything from interest and insurance rates to employment. And once your score is damaged, it can take years for it to recover. Protect your credit scores, avoid late fees and penalties, and keep the bill collectors away by paying your bills on time, every time. It's a fundamental part of being an adult. (See also: Here's What to Do if You Can't Pay Your Bills On Time)

4. Using credit responsibly

Ready for my best Dad impression? "Credit is a tool, not a toy." But Dad is right. Using credit responsibly means controlling impulses, only charging what you can pay off at the end of every month, and not confusing your credit limit with your budget. Seriously — credit abuse destroys the financial lives of countless families every year. Choose to be different. (See also: 12 Habits of Highly Responsible Credit Card Users)

5. Negotiating

The unsung hero of personal finance, negotiating is a skill that can save you thousands of dollars over your lifetime. Imagine paying full price for every car and every house you buy. Or worse, imagine not knowing how to respectfully push back on the first salary offer a potential employer makes. Launch into adulthood from a position of power; know how to negotiate with confidence.

6. Setting goals and saving for the future

Financial skills are a means to an end. Determine what kind of relationship you want to have with money, exactly what you want to achieve financially, and what level of discipline and attention it will take to turn your goals into your reality. Save with that plan in mind — and save without interruption. In short, apply the same level of dogged determination to your financial life as you applied to your education. The rewards will be just as great. (See also: 5 Money Moves to Make the Moment You Graduate)

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This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Cut the Cost of a Hospital Stay

Aja McClanahan — Mon, 05 Feb 2018 09:30:08 +0000

Let's face it: No one wants to get sick or be in pain in a strange place. For this reason, going to the hospital can be an unpleasant experience. To add insult to injury, you can be faced with a huge bill once the whole ordeal is over.

Though going to the hospital may not be something you can avoid, you might be able to lessen the blow by cutting the cost of your stay. Here are some tips that could lower your final bill from the hospital. (See also: How to Handle a Massive Medical Bill)

Consult with your doctors

Before going to the hospital, ask your physician to explain, in detail, the services that will be rendered during your stay. Maria Townsend, an insurance adviser, says you should take it a step further and get this information in writing. "Get an itemized summary of treatment that will be provided during the hospital stay and send it to your insurance carrier for preapproval," she says.

You can also inform yourself ahead of time by researching the costs involved in certain medical procedures and treatments. Fair Health Consumer can help you get an estimate based on your location and whether or not you'll be going through insurance. By doing this research beforehand, when your bill comes, you can compare your initial estimate from your doctor and identify mistakes or charges that should not be on your bill.

Talk with your insurance

Once you are aware of the services your doctor is proposing and estimating, make sure every aspect of your care is covered and approved by your insurance. This alone can cut down on the prospect of a huge bill for your hospital stay.

For example, you need to know whether the physician (or anyone else) rendering services is in your insurance network. Alicia McElhaney, founder of She Spends, a money management website says, "Basically, what happens is that a hospital may be covered by your insurance, but a doctor working there may not be. As a result, you may receive bills for services from the doctor after receiving care."

If you find out that some service providers or facilities aren't covered under your insurance, ask for a list of providers and facilities that are. It might be a hassle to change doctors, but it could be a worthwhile activity that can save you a lot of money.

Shop around

If you've contacted your insurance and received a list of in-network providers and facilities, you may still want to compare prices for two or more options in your network. This can help you reduce your total out-of-pocket expense.

Another way to save money is by having lab work and X-rays done at clinics or imaging centers outside of the hospital. These services are almost always more expensive when performed in a hospital. If you are shopping these services around, clear this with your doctor first. You want to make sure that you are getting the exact diagnostic and imaging information they need to treat you effectively.

Be thrifty

There are a few money-saving methods that most people don't think about when staying in the hospital. You don't have to use every product or service that is provided to you.

For example, you can ask if the hospital will allow you to bring your own prescription or even nonprescription drugs. In some cases, you may save on both the cost of some drugs and the fee charged to administer them.

You might also be able to save on other things like meals or paper products you'll be given during your stay. The cost of even basic items like plastic baggies and tissues are inflated when passed on to patients.

Log your stay

While you are in the hospital, you should document every part of your stay. If you're not able to, ask a friend or relative to help you. Things you want to keep track of include how long you were in different places in the hospital and with whom: operating room, recovery, anesthesiologist, surgeon, etc.

You'll also want to document procedures and medications that were given to you. This way, if there are any errors on your bill, you'll have a log to help clear up errors. (See also: 6 Ways to Avoid Surprise Medical Bills)

Check your bill

Once the bill arrives, go through it with a fine-tooth comb, as medical bills sometimes contain errors. You'll want to check your bill against both your insurer's explanation of benefits and the log you kept for yourself during your hospital stay.

If things don't add up or you don't understand a charge on a bill, don't be shy about calling your insurer and the hospital. You can request an explanation or even a further break down of vague line items or anything categorized as miscellaneous.

For claims your insurance denies, follow up with the company to find out why. They should give you information on the next steps for getting your hospital stay covered. Depending on their response, you may have some recourse by following up with your doctor or appealing the decision with your insurer.

Negotiate with the hospital

It might be scary to get a hospital bill that seems larger than life, but it's not set in stone. Once the bill arrives, you can try to negotiate with the hospital a few different ways.

To begin, you can offer to pay your entire bill with cash. The hospital may also extend a discount if you pay at the time you receive the service. The hospital likely prefers cash to drawing out payments over an extended period of time or sending your account to collections for nonpayment.

The next thing you can do is ask for a payment plan. This may not technically reduce the amount of the bill, but it can reduce the blow to your pocketbook if you can't pay the entire bill at once. Plus, it doesn't hurt to ask for a discount anyway. Many times, the hospital is just happy to collect and is willing to make payment that much easier for you.

Another alternative is asking for financial assistance or charity care that could reduce your bill. There may be an application process to be eligible, but it's worth a shot if it means you don't have to pay the entire amount billed to you. (See also: 7 Ways to Negotiate Medical Bills)

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This article is from Aja McClanahan of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Money Resolutions Anyone Can Conquer

Emily Guy Birken — Fri, 22 Dec 2017 09:00:07 +0000

It feels great to make New Year’s resolutions — but following through on them is much more difficult. In fact, according to U.S. News and World Report, 80 percent of New Year’s resolutions fail by February.

It doesn’t have to be this way, particularly if you want to improve your financial life in the coming year. Just front load a little bit of work right around January 1, and you’ll be able to conquer the following money resolutions without having to lift a finger over the rest of the year.

Resolution: Build an emergency fund

You know that you should have a savings cushion to protect yourself in case of an emergency, but putting aside the money for an emergency fund never seems to make it to the top of your to-do list. No matter how many times you’ve resolved to cut out the lattés and bank the savings, it never seems to happen.

Do it now: Adjust your withholding

If you regularly get a large tax refund each year to the tune of thousands of dollars, you can effortlessly build your emergency fund without having to quit your latté habit. Just imagine how quickly you could build up your emergency fund if that extra money went into your savings account instead of taking a trip to the IRS and back.

While you’re feeling resolved and virtuous, adjust your withholding to do just that. Start by visiting the IRS withholding calculator to determine how many withholding allowances you may take. Remember that the withholding allowances you claim do not determine your tax bill, only how much you pay in taxes per paycheck, so your answers on the calculator can be approximate.

Once you have figured out your allowances, request and fill out a W-4 form from your employer's human resources department. At the same time, set up an automatic transfer of the difference into your emergency fund. You can do this either through your bank’s website, or with a direct deposit from your employer.

And just like that, with an afternoon’s worth of paperwork, your resolution will work for you throughout the year without you thinking about it. (See also: 7 Easy Ways to Build an Emergency Fund From $0)

Resolution: Pay off debt

According to The Motley Fool, the average American household owed $6,183 in credit card debt, $10,397 in student loan debt, and $9,206 in auto loans as of the fourth quarter of 2016. Resolving to get those balances paid off in the new year will not only free up more money each month, but will save you thousands of dollars in interest payments over the life of the loans. But finding extra money in your budget to send to your creditors is just as difficult as finding spare cash for an emergency fund. So how can you fulfill this resolution without feeling the pinch?

Do it now: Set up weekly or bi-weekly payments

Whether you are looking to pay off credit card, student loan, auto loan, or even mortgage debt, you can channel the power of your calendar to help you reach that goal. Many creditors will allow you to send partial payments on a bi-weekly or weekly basis. Instead of making one monthly payment, you can break it in half or quarters and pay it bi-weekly or weekly instead.

Not only will this allow you to send in more payments, but it can also save you interest on your credit card debt because you are generally charged interest on a daily basis. The best part is that your payments will feel basically the same to you, while they are working harder to eliminate what you owe. (See also: 5 Ways to Pay Off High Interest Credit Card Debt)

Resolution: Increase your retirement savings

Retirement is so far away that it’s hard to even take the prospect seriously. But you know that you should be saving more for retirement, and you really do mean to look into contributing up to your employer match in your 401(k) — you just never get around to actually doing it. Enough is enough: This will be the year that you actually increase your retirement savings and get on top of planning for your future.

Do it now: Have 1 percent automatically transferred to your retirement account

A quick trip to your human resources department can help you get this resolution working for you throughout the year. First, determine how much you need to contribute to your 401(k) to receive the employer matching amount. Even if there is no way you can afford to contribute up to the match, start by having an additional 1 percent transferred to your account.

While you’re there, set up an automatic increase of your contribution by an additional 1 percent in three months, another 1 percent for six months down the road, and another 1 percent for nine months from now. These automatic bump-ups will make sure you are contributing to your retirement without having to think about it, and the changes will be gradual enough for you to easily weather them. (See also: Stop Making These 10 Bogus Retirement Savings Excuses)

Resolution: Spend less

You make a good living, but it just seems like there’s not enough money at the end of your month. The problem is that resolving to spend less money usually results in living like a monk for the month of January, then going on a shopping binge the minute those Presidents Day sales are announced. But just how can you spend less money without resorting to these sorts of yo-yo money diets?

Do it now: Negotiate your bills

Take an afternoon to call your service providers and ask for a better price. There is no better place to spend less money than on your regular bills, since those are predictable and can make a big difference in your budget. While it may feel a little odd negotiating with service providers, the results can range from modest to impressive — and it certainly can’t hurt you to ask.

Consider calling your cellphone and internet service providers first, as they are often open to negotiation to keep loyal customers. It costs them far more money to woo a new customer than it does for them keep you happy. Make sure you do the research to know competitive prices — both among other providers, as well as the new customer pricing with your current provider — so you have some leverage for your request. (See also: The 6 Monthly Telecom Bills You Can Negotiate)

You can also potentially negotiate your rent payment with your landlord, especially if you are a reliable tenant who is planning on staying put for a while. You could ask your landlord for a longer-term lease in exchange for a lower monthly rental payment, which can be a win-win for you both.

Resolutions don’t have to be daily chores

Though New Year’s resolutions are often about changing your daily habits, making the most of your financial life doesn’t necessarily require such diligence. Instead, take a little time right now to set automatic financial decisions in place that will take care of you all year.

Then all you have to do is sit back, relax, and watch your resolutions handle themselves.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Use the Holidays to Teach Kids About Money

Emily Guy Birken — Mon, 09 Oct 2017 08:30:08 +0000

My kids love the holidays. They plan their Halloween costumes as early as March; they ask to help make pumpkin pie the moment there's even a hint of chill in the air; and they have Hanukkah wish lists going nearly year-round.

My husband and I get a kick out of their enthusiasm. It helps us remember the holiday magic we felt as children. But in addition to being fun and meaningful traditions, holidays also offer parents the opportunity to teach their kids about money.

Before this year's holiday season kicks into high gear, consider using the occasions to teach your kids the following lessons about managing money:

Halloween

Your kids' favorite candy-based holiday provides you with several ways to teach important money management skills.

Costume budgeting

Whether you are footing the bill for your child's costume or you are asking them to use their own money, start by setting a dollar limit on the amount they can spend and offer to help them shop around. These limits will help your child understand the trade-offs they will have to make to stay within a budget.

For instance, your daughter might find that the Wonder Woman costume at the local party store would blow her budget — but she could save money by stenciling Diana Prince's WW logo on a red T-shirt she already owns and adding white star stickers to a pair of blue shorts or a blue skirt. Recognizing that she could spend either money or time is an important part of learning to budget. (See also: 20 Simple and Cheap Halloween Costumes for Kids)

Candy negotiations

Not every candy in your child's trick-or-treat bag can be a Reese's Peanut Butter Cup or a Snickers. There's bound to be some candy corn, Good & Plenty, or even just Dum Dums that your kids aren't particularly interested in. You can help them to learn the value of negotiation by fostering candy exchanges.

After they've finished with trick-or-treating, encourage your kids to trade with each other. These candy swaps can help your kids figure out just how much they value coveted candy. Is another Mars Bar worth three Twizzlers? Just how many Tootsie Rolls are equivalent to a Blow Pop? This kind of negotiation can help your kids learn how to compromise and determine what they value.

Thanksgiving

Thanksgiving is a time for family, but it can also provide your kids with an excellent opportunity to learn about the importance of tracking your expenses.

Track spending

The average household spent $342 over Thanksgiving weekend in 2016, according to Statistic Brain. You can involve your kids in your Thanksgiving expenditures by asking them to keep a running tally of your spending for the holiday.

Save your receipts from any Thanksgiving-related expenditures — everything from your purchase of pumpkin pie fixings, to the gas station fill-up on the way to Grandma's house, to the 75 percent off fitness tracker you bought for Aunt Sue on Black Friday. Hand over the receipts to your child so they can keep careful track of just how much Thanksgiving will cost you this year.

Not only will this exercise in tracking your household spending help your kids to practice their math skills, but it will also help them see just how quickly expenses can add up.

Christmas and Hanukkah

Kids get understandably excited about the gift aspect of Christmas and Hanukkah, but these holidays are also a perfect opportunity to teach them how to manage their money.

Gift budgeting

It's so easy to go overboard when buying gifts for loved ones, and it's important for children to learn that you can give presents without breaking the bank. Even very young children can help you to create a list of everyone you want to give a present to. From there, decide on the amount of money you can afford to spend per person. Older children who will be buying their own presents for family can make this decision themselves, with your help. Younger kids can help by writing down the dollar amount you can spend.

You can then start brainstorming gift possibilities. Have your kids comparison shop for prices or figure out alternatives if certain gifts aren't in the budget. This exercise can help your kids understand that generosity and spending too much aren't synonymous.

Wants and needs

Holidays can often be a time of excess, which means it can be tough for kids to recognize the difference between their wants and their needs. One way parents can help their kids learn those differences is to institute the Four Gift Rule. With this rule, each child receives:

Something they want.
Something they need.
Something to wear.
Something to read.

Limiting your children's wish lists to four distinct categories helps your kids focus on the things that they truly need and the wants that they value most. You can make it clear to your kids that they can put more than one item in each category, but that they will only receive one present from each category.

Not only will this system help save you money and time, but it will help your kids keep their gift expectations reasonable.

Holidays, with a side of money management

Enjoying the holiday season with your children is a perfect time to teach them some of the finer points of budgeting, negotiation, money management, and managing expectations.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Handle a Sudden Loss of Income

Annie Mueller — Thu, 17 Aug 2017 08:30:10 +0000

Life happens. Sometimes, life can throw a sudden job loss or drop in income your way. Beyond saving up an emergency fund, you'll need to make a few key moves while you stay afloat. These steps will help minimize the damage and stabilize your finances, quickly.

Alert the people who need to know

There are some exceptions to this rule, but it usually pays to be proactive and honest about your financial situation. If you make the first move and have an honest talk with your landlord, for example, you might be able to negotiate a reduced rent for a few months, set up a split payment agreement, or mutually decide on a later due date for the payment. If you wait until the rent is overdue, and your landlord's patience is already stretched thin, those negotiations might not go so well.

It can be intimidating to initiate these conversations; there's no guarantee they'll go your way, and it's humbling to admit that you're struggling financially. However, it's worth the effort. The worst you'll get is a, "No." In the best case scenario, you may gain some extra time, waive some late fees, or find a much-needed reduction in what you have to pay.

Put payments on hold

If you have automatic payments, particularly large ones, call your bank and put them on hold. While your income is low, you need to assess and prioritize each payment you make, rather than let things flow automatically. You'll also avoid potential overdraft fees by holding those automatic transfers or payments.

Some banks charge a fee for putting payments on hold; if that's the case, see if you can put the payment on hold from the payee-side of things rather than through the bank. In other words, if you have an automatic payment scheduled to your insurance provider, for example, and the bank will charge you to put a hold on that auto payment, call your insurance provider and cancel the automatic payment plan until you're ready to reinstate it.

Be sure that you keep a spreadsheet or other record of all the payments you put on hold; they still need to be paid. You're just going to manually send those payments according to the best timing for each one. Don't lose track of the payments that need to be sent: Note the amount, the payee information, and the due date for each payment.

If you know you'll be late on a bill or payment, call ahead. You may be able to negotiate a temporary, reduced payment plan for credit card debt, car payments, or other bills. Most companies would rather have some money than no money and will work with you, at least to some extent. (See also: Pay These 6 Bills First When Money Is Tight)

Reduce your expenses

Take a good look at your budget and cut out all but the essentials. This usually means that you're paying bills and handling necessary expenses such as food and fuel in the car. Every other expense goes on hold: clothing, travel, entertainment, and so on need to wait. You can — and should — still have fun, but now is the time to opt for free activities. (See also: 5 Budget Overhaul Tricks for the Recently Unemployed)

For the time being, pay for your expenses in cash. First, you'll stay more aware of what you're spending if you're handing over a stack of bills. Second, you won't be buying things you can't really afford if you're paying cash. You either have the cash, or you don't; no cash, you don't buy it. This is a very simple way to reduce your expenses to the essentials, only.

Remember that this is a temporary state of being. It's stressful to deal with income loss, and having to do without your favorite luxuries can make it even more difficult. However, reducing your expenses is key to getting your finances under control. Splurge on free experiences that help you relax and enjoy the moment, such as watching the sunset, taking a walk, meditating, listening to music, or volunteering.

Get money coming in

Now is the time to polish up all your side-hustle skills. You may not be able to get back to your original income level, but you can definitely pay some bills. There are numerous ideas for side gigs; you might start by offering your professional skills within your network. You can tutor, write, advise, consult, pick up a weekend job, do yardwork, become a virtual assistant, or any combination of those. (See also: 14 Best Side Jobs for Fast Cash)

Side work will help your mentality; it's important to keep working and be active rather than sink into helplessness. And more importantly, side work will bring in some money.

Don't panic

Last, but certainly not least: Don't panic. It's scary to watch your income plummet and your savings dwindle. But a sudden loss of income is not a reflection of your value as a person. It does not define you, and it does not limit your potential or your future. Many people have walked through the financial fire before and come out stronger than ever on the other side. By taking some of these smart steps now, you can start moving along that path yourself.

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Easy First Steps to Paying Off Debt

Annie Mueller — Mon, 14 Aug 2017 08:00:05 +0000

Facing debt can be stressful and overwhelming. But it's important to remember that no matter how much you might feel that you're in over your head, debt is a hole you can climb out of. You can absolutely do this. Here are the first steps you need to take.

1. Figure out how much you owe

The first step can be the most painful. It's time to get an overview of your debt, which means you need to add up everything you owe and take a good look at your total. That, my friends, can be a difficult moment. But that difficult moment will also provide you with the clarity you need to start taking back power over your financial future.

How to do it

Gather your financial statements or log in to the online portal for each account you owe on: your credit cards, mortgage, student loan, car loan, lines of credit, home equity loan, etc. Create a simple spreadsheet with four columns: one to identify each debt ("Student Loan"), one for the amount owed, one for the minimum monthly payment, and one for the interest rate. Pull your credit report to search for outstanding debts, and compare the information against what you have in your own records.

2. Sort and prioritize the debt list

Now it's time to start sorting out your spreadsheet entries so you can come up with the best possible plan to get out of debt.

You might think that the most important debt to pay off is the biggest one; however, it's often a good idea to identify the debt with the highest interest rate and knock that out first. This is known as the avalanche method of debt repayment. Higher interest rates lead to faster debt accumulation and result in you paying a higher amount over the course of your debt repayment. The faster you can get rid of high-interest debts, the better.

How to do it

Sort your spreadsheet by the fourth column, the one for the interest rate. You might see anything from a 4 percent interest rate (for example, on a student loan) to a whopping 22 percent interest rate on, say, a credit card. You may owe more principal on your student loan, but relatively speaking, you're wasting more in interest every month on that credit card. The credit card is therefore the higher priority for complete repayment. (See also: 5 Ways to Pay Off High Interest Credit Card Debt)

3. Add up your minimum payments

You don't get to stop making payments on the lower-interest debts, even though they're not the highest priority. Instead, you need to continue making the minimum monthly payments on all lower-interest debts while making bigger payments on your debt with the highest interest rate. Once you knock one high-interest debt out completely, you prioritize the debt with the next-highest interest rate and continue paying minimums on everything else.

How to do it

Add up the monthly minimum payments for all the debts on your list, including the highest-interest debt. This is the total, bare minimum debt repayment amount that needs to fit into your current budget. This can be a nerve wracking step, especially if you don't have enough income to comfortably afford that total monthly minimum amount. You may need to take steps to cut expenses elsewhere, or bring in sources of additional income.

4. Determine your needed overage payment

Now it's time to calculate the payment you need to get that highest-interest debt paid off as quickly as possible. If you keep making only the minimum payment on it, you'll keep accumulating interest charges and it will take much longer to pay it off. Instead, think of a target timeline (maybe six months or a year) for paying off the highest-interest debt, and calculate an ideal amount you can pay above the minimum payment to achieve that goal.

How to do it

Use an online credit card payoff calculator. Enter the information for your highest-interest debt: total amount owed, interest rate, and the minimum payment. You'll see how long it will take to pay off the debt if you only make the minimum payments. Now, instead of minimum payments, enter how many months you'd like to have it paid off in. The result will show you the monthly amount you need to pay in order to clear the debt within your target timeline.

5. Give yourself the best possible conditions

You have the essential numbers that you need. They may be painful, but knowledge is power. The next step is to find ways to reduce the financial impact that these debts have while you repay them. Debt consolidation may be the best way to do this; however, you may also be able to lower your interest rates and negotiate better payment plans on individual debts, as well. (See also: 4 Ways to Negotiate Credit Card Debt)

How to do it

This takes some time, depending on the number of debts you have. Call each creditor and ask how you can reduce your interest rate. You may be able to refinance a home mortgage or car loan for a lower rate, for example. If you have a good repayment history, ask credit card companies to consider your reliable record and give you a better interest rate. If you're able to take out a low-interest loan, such as a line of credit or home equity loan with your bank, you may be able to use it to pay off your high-interest debt and consolidate at least some of your debts into a single, lower-interest loan.

6. Protect your credit and your finances

If you're late on a payment, being proactive can save you from accumulating fees and damaging your credit score. For example, if you call the credit card company and explain that you can't make the full minimum payment on time, they may work with you to split the payment in half for the month so you can avoid late fees. Many times, a phone call and a courteous conversation can reduce or remove a fee, extend a deadline, or result in a more manageable payment plan.

How to do it

Set up alerts or schedule automatic minimum monthly payments so you don't miss due dates. If you know you won't have the money on time for a particular payment, call in advance to negotiate an extended deadline or set up a split payment plan. Additionally, you may want to keep an eye on changes in your credit report.

7. Protect your financial future

As difficult as it seems to save money when you're trying to pay down debt, it's so important. You need an emergency fund for those unpredictable expenses that will happen. Building an emergency fund will keep you from having to add to your debt when the car breaks down or you don't get that bonus you were counting on. In other words, it's the essential tool that keeps you climbing out of that debt pit, even when life happens. Without it, one setback can set off a downward spiral deeper into debt. You don't want that. (See also: 4 New Reasons You Need an Emergency Fund)

How to do it

If your budget is absolutely maxed out, you can pick up a side hustle or employ another short-term strategy — such as selling off a few high-value items, or taking on seasonal work — to quickly build up an emergency fund. (See also: 6 Fast Ways to Restock an Emergency Fund)

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You Buy a Car With a Credit Card?

Holly Johnson — Wed, 05 Jul 2017 08:30:12 +0000

While most people rely on cash or bank financing to buy a car, it may be possible to make all or part of your vehicle purchase with a credit card instead. This might seem like a risky proposition, but there are real, tangible benefits that can come from using this payment method if you're careful.

With the right credit card strategy, you could earn rewards for your car purchase, save money on interest, and potentially pay your car off faster. Obviously, there are also a lot of things that can go wrong with this strategy. If you can't afford a car and are looking at a credit card as your way to finance it because you have no other options, forget it. You'll end up worse off if you can't make payments on your credit card.

Even if you can afford the car, you'll need to answer a few questions. Let's talk about whether charging it makes sense — and when it's possible.

Is it possible to buy a car with a credit card?

First, you need to determine whether the dealership or car lot you're buying from will allow it. There are instances when a car lot may let you pay for your entire car purchase with credit, but those situations are rare.

More likely, if a dealership lets you pay with a credit card at all, it will cap the amount at, say, $5,000. The main reason dealerships hesitate to let you charge tens of thousands of dollars to your card is that, like other merchants, they pay interchange fees to accept credit cards. These fees are usually around 2 percent, sometimes higher. So, if you charge a $30,000 car, your dealership could be on the hook for at least $600 in processing costs.

The other thing you need to note is your available balance. Obviously, you can't charge more than your credit limit, so you'll need to be aware of that limit.

Earning rewards with a car purchase

While there is more than one way charging your car to a credit card can leave you ahead, the most intriguing opportunity is the rewards you could earn. You can get cash back or travel rewards. You might even want to use a co-branded car credit card (yes, they exist!). This can provide you a hefty discount when you are ready for your next car.

Obviously, this strategy is only worth pursuing if you have the cash in the bank to pay your card off right away. While the cards with the most lucrative rewards programs help you earn "free money" on large purchases, the interest rates they offer tend to be higher than average. If you put $30,000 on a credit card that charges 15 percent and it took you five years to pay your loan off, you would fork over $12,822 in interest alone.

Saving interest on a car purchase with a 0% APR card

This leads to the second reason some people may choose to charge their car purchase — to save money on interest. While many rewards cards charge higher interest rates than most, an array of cards charge 0% APR for new purchases for 12–21 months.

The key to making a 0% APR card work in this scenario is making sure you can pay the balance in full before your introductory offer ends. Once it's over your rate will reset to a regular credit card interest rate, which is almost certainly higher than the rate you'd get on a car loan.

Before you pick a 0% APR card for your car purchase, make sure you can pay the balance in full before the introductory offer ends. That way, you can truly save money on interest — and not end up potentially paying more in interest than if you'd just gone with a loan.

Buying a car with a credit card

If you're dead set on charging your car to a credit card, it's important to think through several important scenarios first. Here are four tips that can help you get the most out of the situation.

1. Don't talk about payment until you've negotiated a price

While there's nothing wrong with using credit for a car, your car salesman may want to make up for their fees by charging you a higher sales price. That's why you should never reveal that you intend to pay with credit until you've negotiated the terms of the sale. By slow-rolling your credit card payment plan, you can get the best price possible while also gaining the benefits of using a card.

2. Make sure you're getting the best deal possible

As with any car purchase, you should research the cars you're interested in online before you ever step into a dealership. Websites like Kelley Blue Book can help you figure out exactly what a car is worth based on its make, model, and condition. If the dealership wants you to pay more than a car is truly worth, the rewards you're earning probably won't be worth it, especially if they decide to tack on a fee for using a credit card.

3. Do the math before you buy

While getting 0% APR on your car purchase can pay off, it's important to do the math if you don't think you'll pay off the entire purchase before the introductory offer ends. If you need several years to pay your car loan in full, for example, you will be better off with bank or dealership financing — even if the ongoing APR seems high.

4. Decide what you want — 0% APR or rewards

While a slew of popular credit cards offer rewards or 0% APR for a limited time, few cards offer the best of both. Before you charge your car to a credit card, make sure you have defined goals and a plan to reach them. And if you don't have the right credit card to meet your needs for this purchase, explore your card options and apply for a new card before you step into a dealership.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Smart Money Challenges You Can Totally Do

Paul Michael — Mon, 03 Jul 2017 08:00:08 +0000

Are you up for a money challenge? How about several?

Make no mistake, some of the savings challenges below are tough. Some may even drive you a little bonkers. But they are all achievable if you put your mind to it, and can leave you with more money for your financial goals — in some cases, considerably more. They may even leave you healthier and happier.

So, if you think you have what it takes, here are seven money challenges. Which ones will you take on?

1. Use thrift stores whenever possible

Of course, there are necessities you can't get at a thrift store, like groceries. But for clothing, household items, electronics, and a whole host of other products, thrift stores are a gold mine.

Thrift store clothing is usually in excellent condition, and sold for a fraction of the price you'd pay at a retail store. Simply pop the garment in the wash when you get home, or get it dry cleaned, and you're good to go. Thrift stores also have special offer days — Goodwill runs 99-cent tag days every week. You can actually pick up a winter coat, a great watch, or a coffee maker for less than a buck. Do this challenge for one year, and see how much you save.

2. Do the 52-week savings plan

Often known as the "52-week money challenge" or "a dollar extra every week," the plan eases you into saving a substantial sum of money over the course of one year. It's simple enough, and very easy to stick to, at least at first.

In January, at the end of week one, you'll put $1 into your savings account (or jar). At the end of week two, you pop in $2. Week three, $3. And so on for the whole year. By the time you reach the end of December, you'll have saved almost $1,400.

The only drawback to this plan is that the amounts get larger and larger as the year goes on, and they're the most expensive during the December holidays. But stick with it, and you'll have a nice chunk of money to celebrate with. Even if you bail at the end of November, you'll have collected over $1,100. That could pay for a lot of those gifts and special events.

3. Cancel Amazon Prime

Look, we all know how good Amazon Prime is: free two-day shipping, a massive library of free movies and TV shows, and some great prices on thousands of items. But, and this is a big but, for some people it can become addictive. Having instant (or almost instant) gratification is incredibly satisfying. Admit it, how many times have you casually hit the "Buy now with 1-Click" button when you saw something you liked?

The website and app are designed to make impulse buying easier. One woman recently documented how she spent over $41,000 on Amazon Prime from 2008 to 2016. In 2015, she bought 427 items — more than there are days in a year. And not only did she find it very easy to do, she was at a loss as to what most of these items were.

So if you feel like you are too often tempted by Amazon Prime, then try giving it a miss for a while. See how much you save. You may find it is a temptation that sucks money away from you.

4. Stop eating out, and no more fast food

According to the Bureau of Labor Statistics, in 2015, the average American family spent over $3,000 on takeout and dining out. That's $250 every month!

That same year, the average family spent just $4,015 on groceries. And the gap between those figures continues to narrow. As a nation, we're addicted to quick and easy meals and it's really hurting our wallets.

So, make a pledge right now to give it up for a month or two. No more restaurants. No more quick stops at the drive-thru. For at least two months, give up the notion of getting food from anywhere but your own home. Bring lunches to work. Pack lunches for the kids. Plan meals for every night of the week, and get creative with leftovers. You will miss the quick fix and the ease of eating out, but you will save hundreds of dollars. Furthermore, you will not be eating all those preservatives, fats, and chemicals that come with fast food. You'll be healthier and richer.

5. Do your shopping on just one day of the week

When I was growing up, Friday was grocery shopping day. My parents would take us all to the local supermarket with a list of things to buy, and that's what we bought. That would have to last us for the week, and there were no exceptions. If we ran out of fruit or cereal, we'd find substitutions. If we wanted candy or soda, and we ate what we had by Tuesday, then we had to wait to get more.

This taught my sister and I that we had to ration what we had, and that we could not simply rely on an endless supply of whatever we wanted. Plus, every time you pop into a grocery store, even if it's just for bread or milk, you inevitably get caught up in special offers and eye-catching deals, and come back with more than you need. So, set a day of the week to shop, even if it's done via a home delivery service, and stick with it. What's more, this challenge makes it much easier to budget for the month.

6. Spend one month haggling over as much as you can

This one is tough for people who don't like confrontations or talking to customer service. However, if you persevere, you will come out of it saving a whole lot of money.

Spend the first week haggling with every service provider you have. Your cable, internet, and phone providers have something called a customer retention department. Their role is simply to keep you as a customer, and they have some significant discounts to offer just to keep you on board. All you have to do is call and say you want to cancel, and you will be offered rebates and lower rates almost immediately.

Next, hit up your credit card and banking providers. Can they lower your interest rates?

After that, start haggling in stores. If you go grocery shopping in the evening, you will be able to make the manager some offers on food that is about to expire. Sometimes, perfectly good food destined for the garbage can be acquired for pennies on the dollar.

Be brave. Aim high, and if you get nothing, guess what? You've lost nothing. But chances are, you'll come out on top most of the time.

7. Clear out the pantry and fridge once a month

Take a look in your fridge, freezer, and pantry when you finish reading this article. You will probably be amazed at what you find in there. For a start, many of the items at the back of the pantry and fridge will be expired. That is cash in the trash. You will also find things you completely forgot you bought, and perhaps a few items that should never have been in there in the first place.

Sort through everything and then stick to using up everything in the pantry and fridge for one week. Don't go to the store. Don't eat out. Get creative! You will come up with all sorts of weird food concoctions, but that's half the fun. You can also search recipe sites, input what ingredients you have available, and receive recipe suggestions that use those ingredients. Some people do this religiously, and it leaves them with a well-organized kitchen and very little food waste each month.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Handle a Massive Medical Bill

Alaina Tweddale — Fri, 05 May 2017 08:30:12 +0000

"Have you noticed that your neck appears swollen?" That's what the nurse practitioner asked about halfway through what I had assumed was a routine office visit.

Soon after, I was swiftly catapulted into a long series of office visits that were anything but routine. There were ultrasounds, biopsies, consults with specialists, an invasive surgery, an overnight stay in the hospital, and eventually, the ok from my docs to go about living a normal life.

That's when the medical bills started rolling in.

Turns out I could kick thyroid cancer to the curb, but it wouldn't be cheap. Medical care is expensive, not just for me, but also for the one in four American adults under age 65 who have past-due medical bills, according to a recent study released by the Urban Institute.

Still, knowledge is power. At least, it is according to the same Urban Institute study, which reported, "Adults with greater financial knowledge are less likely to have past-due medical debt."

That's good news for Wise Bread readers, who are keenly interested in the fate of their financial futures. Even so, a surprise bill, particularly a large one, can take even the most educated saver by surprise. The silver lining here is that there are several specific steps you can take to help minimize the pain that often comes with the arrival of an unexpected medical expense. (See also: What to Do If You're Hit With a Huge Medical Bill)

1. Scrutinize your bill

According to various sources, as many as eight in 10 medical bills contain some sort of error — sometimes even multiple errors. I'm not surprised. Mine sure did.

When that first hospital bill arrived, it was for more than my annual deductible. A lot more. After suffering what felt like a small panic attack, I called my insurance company. As it turned out, they hadn't received a bill from the hospital. Instead, the hospital had billed me directly.

It took a few frustrating phone calls, but the hospital ultimately fixed the mistake. Still, had the bill been for a less egregious amount, I may have overlooked the error and just paid it. I mean, how many of us scour the line items of those bills?

Turns out, we should.

"Sometimes, insurance companies or doctors' offices make mistakes that they don't realize," says financial coach Maggie Germano. "They may have simply miscoded something. It's up to you to follow up and make sure they aren't charging you when they shouldn't be."

2. Negotiate with your health care provider

Looking over an itemized hospital bill is not for the weak of heart. Mine included shocking over-the-top expenses, like $27,000 for three hours in the operating room, $15,000 for an overnight stay in a recovery room, and $108 for a single dose of calcium.

Those inflated fees are all part of an elaborate dance between health care providers and insurance giants. Insurance companies don't often pay the amount that gets printed on those statements. Instead, they use it as a jumping off point for reimbursement negotiations. Sadly, it's those without health care coverage who often get stuck in this line of medical bill crossfire.

"Hospitals are always complaining that they're not reimbursed enough money from the health insurance companies, and therefore increase fees as high as possible," says Adria Gross, founder of MedWise Insurance Advocacy.

Uninsured or underinsured patients typically don't have anyone behind the scenes who can negotiate those fees on their behalf. Instead, they have to advocate for themselves.

According to money-saving expert Andrea Woroch, health care providers are not likely to negotiate costs if you have health insurance. But if you're uninsured, you may be able to talk your bill down by 10 to 20 percent. That's why it never hurts to get connected with the customer service department — no matter how long the wait or arduous the phone tree — and ask for a break. Woroch notes that some centers will even give a discount if you offer to pay in cash. (See also: 7 Ways to Negotiate Medical Bills)

3. Get smart about the actual cost of your procedure

Still, negotiating a medical bill isn't as easy as "ask and ye shall receive." It helps to come to the table prepared with "the usual, reasonable, and customary charges" for your particular medical procedure, says Gross. The first step is to track down the procedure code for the service you've been billed for. A quick internet search should do the trick. Then, check out an online database to start searching for the fair fee associated with your procedure. (Gross recommends Fair Health Consumer and Healthcare Bluebook.)

Gross says that finding that number — before you call — can help you determine whether you've been overbilled so you can fight to correct the charges.

4. Request a payment plan

If you still can't afford the bill, Germano suggests asking your doctor to set up a payment plan. "Most medical centers just want to get paid eventually, so they should work with you to make it easier for you to pay," she says.

The key to this strategy is figuring out how much of the bill you can afford to pay each month. You'll likely be paying it for a while, so make sure you can commit to this amount for the long-term.

"Get the agreement in writing, and make sure they send you a confirmation email or letter whenever you make a payment," warns Germano. Then, keep careful track of your payments along the way. "That will prevent them from accusing you of not paying what you owe," she adds.

It will also ensure that the bill doesn't get sent to collections, which will damage your credit score.

5. Plan for the future

Medical surprises happen, no matter how healthy you think you are. (Trust me on this one. No one was more surprised by my diagnosis than me.) Keeping a stash of cash on reserve in your Health Savings Account (HSA) or emergency savings may just save your future self from a couple of missed mortgage payments. (See also: How an HSA Saves You Money)

As Ben Franklin once wisely said, "An ounce of prevention is worth a pound of cure." That adage applies to your health, but also to what's in your pocketbook.

Start planning now, so you'll be prepared when the unexpected strikes. And if it doesn't? Well, it never hurts to have a few extra bucks in the bank.

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This article is from Alaina Tweddale of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways to Earn More Money — Without Working More Hours

Amanda Gokee — Tue, 11 Apr 2017 08:30:14 +0000

If you're tired of a job that doesn't pay enough, it may be time for a change. The good news is, that doesn't necessarily mean you have to work endless hours. Here's how to flip your work-to-earnings ratio.

1. Take less desirable shifts

Some jobs offer financial incentives either for working overtime or for working undesirable shifts, such as overnights, or during weekends or holidays. Shift differentials are particularly common in manufacturing, customer service, information technology, and health care. Sometimes you can earn time-and-a-half (1.5x your base pay) for signing up for these shifts.

You'll be doing the same work as always, but earning something extra for your trouble. Conversely, if you're looking to work fewer hours in the future, some jobs will allow you to bank the overtime hours you put in. Ask your boss about these options.

2. Set up passive revenue streams

For those who have online content businesses, setting up a passive revenue stream is an excellent way to earn more without putting in endless work hours. A passive revenue stream will require some setup work, but then it has the potential to continue earning for you without continued maintenance. (See also: 15 Ways to Make Money Outside Your Day Job)

For example, you may have a blog that's gained a nice following. You can earn money on the blog by selling advertising or creating links for affiliate marketing, which can easily be set up with online retailers such as Amazon. Pat Flynn is at the forefront of this movement. His model mostly involves creating websites with valuable content, such as a niche e-books, podcasts, or online training courses.

The key to earning money is generating traffic, which is why it's critical to select the right content niche using keyword research. Once you've created the content, you'll need to market it to your audience via social media or email lists.

If you've got a popular YouTube channel, it can also generate a passive revenue stream. It usually takes a while to grow an audience and have your videos rank well, but if you turn on monetization (meaning, you allow YouTube to show ads on your videos), you could start earning a nice side income from your most viewed videos. (See also: 5 Social Media Stars Who Earn Way More Than You)

3. Get paid to do what you love

It doesn't feel like work if you love doing it, right? You might not even call it work.

If you love to make jewelry, pottery, sew, knit, or do other kinds of crafts, you can sell your wares on websites such as eBay or Etsy, or face-to-face at craft fairs. Gardeners can make money by opening a booth at a local farmers market. (See also: 5 Best Sites to Sell Your Arts and Crafts)

A friend of mine who is an amazing photographer recently started selling calendars to friends and family with some of her most beautiful prints. She earns $20 of profit on every calendar that she sells, and she hasn't had to invest much extra time to get the calendars made. She gets her customers through word-of-mouth referrals and social media. You may be pleasantly surprised how much reach you can have with social media marketing.

The same is true if you have a particular skill that is in demand. You can start your own consulting business, either online or in-person, and start charging clients to do what you love. (See also: 5 Ways to Make More Money in Under 10 Hours a Week)

4. Earn money for the driving you already do

If you have a car and spend a lot of time commuting to work or school, or driving around for other purposes, companies will pay you to use your car for advertising space. It might sound tacky at first, but chances are you can think of a good use for the extra $100 a month that you stand to earn, without any extra cost to you.

If you're earning a bit of extra cash by driving, you may not have to pick up that extra overtime shift or work through holidays. Opt for reliable companies such as Carvertise and, as always, be aware of potential scams. (See also: 7 Ways to Earn Extra Money With Your Car)

5. Rent your space

By now, Airbnb is a household name, but there are other short-term rental platforms, too. You can use these platforms to earn a bit of extra cash if you have a spare room, a second home, or other type of property. Airbnb includes free rental insurance for hosts and, depending on where you live and how often you rent your property, you can earn $1,000 a month and up.

If you love it, you might consider investing in a property just for renting out through Airbnb. If you get the right deal on the right property, you could earn a lot more than leasing the place out. But be sure to check your local laws. Some municipalities restrict short-term rentals because they tend to drive up rent for local residents. (See also: This Is How You Rent Your Place on Airbnb)

6. Renegotiate your contract

If you're feeling in a rut with your job or you're ready to start a new contract, there are some unconventional work agreements that may help you to make more money. For instance, a friend of mine who works in marketing recently negotiated a new contract that allows her to work at the office about 20 hours a week. Outside of that, she's free to decide how much she wants to work, and she can do it from home.

She will receive a lower base salary per month than she did through her old full-time arrangement, but she will earn commissions on the sales that she makes. That makes it a good deal for both her employer and for her. If she works less, she will earn less, but she has the flexibility to decide. She also has the option to use some of her time outside the office to take up one of the other jobs listed above.

Of course, you can also go the traditional route and ask for a raise if you've been in the same position for about a year and you have compelling evidence to support your request. (See also: 5 Times You Should Demand a Raise)

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This article is from Amanda Gokee of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: