Slash Your Monthly Bills With Online Help

By Elizabeth Hurchalla

When Mike Scholtses’ son Kevin went to college in London this year, he wasn’t sure how they’d afford to stay in touch. With the recession setting in, Scholtses wanted to cut costs, not increase them. “One call to him on my landline was $60!” recalls Scholtses, 55, of Jollyville, Texas.

But then he remembered hearing about VoIP (Voice Over Internet Protocol), which allows users to make phone calls over the Internet instead of phone lines. After he and his son downloaded the popular VoIP software Skype, Scholtses started saving hundreds of dollars a month in phone bills. “Now I talk to Kevin several times a week, sometimes for almost an hour, and it’s totally free!”

As the country’s economic downturn continues, many families are struggling to find ways to save. Fortunately, “there isn’t a bill around that you can’t figure out some way to lower,” says Liz Pulliam Weston, author of the nationally syndicated column “Money Talk” and the guide book Easy Money: How to Simplify Your Finances and Get What You Want Out of Life. And the web is a great place to find out how to cut your expenses and save. 

Tip No. 1: Lower your utility and service bills
To cut your phone bills, you can follow Scholtses’ lead and download VoIP software so you can use your Internet connection to make free or very inexpensive calls.  

If you’re looking for the best deal on a cell phone, landline or wireless plan (or on many other monthly bills), check out the web site LowerMyBills.

Want to save on cable and Internet access? “If you have satellite, cable and DSL in your area,” suggests Pulliam Weston, “play them off against each other. For example, if you have cable, go to DirectTV’s web site and see what kind of deal they’re offering. If it’s better than what you’re paying, call your cable provider and ask if they can match it. They will often give you free HBO or a credit to keep you as a customer.”

To save on utilities, find out how to maximize your efficiency with the quizzes on the government’s Home Energy Saver and EnergyStar web sites. Many local utility companies’ sites also offer money-saving tips and rebate information on energy-efficient appliances and home improvement purchases.

One other easy way to save cash every month: sign up for automatic online bill paying with your service providers. That way, you pocket the price of the stamps you’d otherwise use and avoid any late fees you might incur if you forgot to pay your bill on time.

Tip No. 2: Reduce your monthly expenses
When you’re cash-crunched, it can take some creativity to cut your monthly expenses. For starters, web sites such as The Penny-Pincher Gazette and Coupon Mom help you match coupons with the sales in your area so you can find food for less -- sometimes even for free! For more general tips on how to slash spending and live well on less, you can also visit blogs and web sites like the Dollar Stretcher, Miserly Moms or Frugal Village.

Tip No. 3: Lower your interest rates on credit cards and loans
“To get the best deals on credit cards and loans, you need a decent credit score,” says Pulliam Weston. “To find out yours, go to MyFICO, the same source lenders actually use.”

Once you have that information, research the lowest interest rates for credit cards on sites such as CardRatings, IndexCreditCards or Bankrate. Next, find out the best way to negotiate for those rates on CardRatings or Motley Fool, which even provides a script for talking to your lender.

For advice on refinancing your mortgage or car loan, Bankrate is a popular choice. Need more information on car loans? Go to Edmunds, an automotive information site.

Tip No. 4: Find out what you can do if you can’t pay a bill on time
If you find yourself with more money going out than coming in, there are lots of helpful resources online. But beware: Many of the sites claiming to assist with debt settlement can be fly-by-night firms looking for the quick buck their victims don’t have to spare.

Instead, start with reputable sites such as MSN Money and SuzeOrman to learn effective strategies for managing your debt. Need more help? At the nonprofit National Foundation for Credit Counseling’s site, you can get referrals for legitimate credit counseling agencies as well as budgeting advice. 

If you may be facing bankruptcy, find out what’s involved and what your options are at Bankrate or Nolo, a legal information site. Being harassed by creditors? Look up your rights according to the Fair Debt Collection Act on the government’s site for the Federal Trade Commission.

Finally, if you have a question about a budget-cutting measure, sometimes the best way to get an answer is to just ask. “Message boards can be a great resource when you’re confused and not sure where to turn,” says Pulliam Weston, who suggests checking out the boards on MSN Money, Yahoo! Finance or Motley Fool. Although some answers will be helpful, and some off-base, message boards can provide a variety of opinions, which you can review quickly and easily.