Jay's consumer tips part one: THe COMCAST, AT&T BIll

The most obvious way for almost every consumer bankruptcy client I see to improve their finances immediately is by reducing their spending on telecommunications bills.  Comcast and AT&T bills are a good place to begin your financial decluttering.

First, it is important to understand the business model these companies use.  Comcast will commonly give you an introductory price for one year, then raise the bill by 10-25% or more when your contract is halfway up (typicall month 13).  Thus, their profit goes up 10-25% based on you doing nothing by month 13, andd you don't anything new.

The first step you should take to reduce your Telecom bill is to analyze your usage.  Almost no one needs the "extra speed" Internet packages.  I recently downgraded to the lowest speed Comcast package at work and at home, and it is more than adequate - including fairly heavy use by another family member at home.  Comcast has raised the lowest speed package about every year or two, so even if the prior base package was not enough, it probably is now.

In addition, ask yourself whether you really need the phone service they provide, or the TV service.  This is 2018, and most entertainment is online and accessible by streaming.  Do you really need a TV in your bedroom or the kitchen?  Those extra outlet charges and extra DVR charges really add up!  If you really want the channels, you can purchase them as packages from Sling or DirectTV now and it will be cheaper, and  you can watch on any device.

Once you have determined what you can live without - likely 65% of what you are currently paying for - call Comcast and ask what deals they have if you renew your contract.  If they are not as good of deals as they advertise for new customers, ask the representative where you can take back all their dusty black boxes and cancel your service immediately.  They will then redirect you to the "Loyalty" department - staffed by individuals who will give you the same prices as new customers if you will re-commit.

If your price went up within the last few months, I have found that the representative will oftentimes retroactively apply the lower rates.  In addition, the loyalty department will often times give you a free 6 - 12 months of HBO.  If you take that offer, you should put a reminder in your phone 6-12 months out to call and cancel.  In addition, once you have renegotiated your agreement, you should put a reminder on your phone calendar that it is time to call back in 12 months.

While the rates will automatically increase in 12 months, you can call back and renegotiate the contract, avoiding the bump up in prices by extending your commitment out another year.

By following these steps on the cable bill, I believe many of my clients can save $75 a month by cutting services they don't use and getting and keeping "new customer" prices.  Some can save far more - I have seen several clients paying over $200 to Comcast!  Another option you should consider is getting these services from Sonic.net.  This company re-sells access on AT&T's network, and has excellent customer service.  I choose to use Comcast because it offers significantly faster upload speeds and a cell phone discount, which will be the subject of another post.

Saving $75 on your telecom bill really adds up.  If you put away $75 a month for 5 years and earn a 7% rate of return on your investment, you will have $5330.00 in your investment account.  In 10 years, you will have $12,346.00.  And what did you give up? - maybe an extra tv outlet, and a few channels you don't watch or extra internet speed that is wholly useless.  In other words, nothing - except a half hour on the phone every year talking to the representative and getting Comcast or AT&T's fingers out of your pocket.