Everywhere you turn, it seems there's another pinch in the pocketbook. From gas to groceries, everyone's getting hit by higher prices.
To help stretch your dollars, here are five places to look for savings:
1. Bundle up
If you're dealing with separate companies – and separate bills – for your cable TV, phone and Internet service, think about bundling up. Many companies, like SureWest and Comcast, offer reduced rates if you purchase all three services at one time.
There's even a Web site, www.bundle myservices.com, that offers tips and comparisons for more than 20 companies nationwide.
You can call your local phone or cable TV provider and ask about lowering your rates by combining services. Take advantage of special deals and limited-time deals.
One warning: If you sign up for a limited-time offer, be sure to call and cancel or renegotiate before the rates jump back up.
2. Auto insurance
If you've been with the same insurance company for years, it can pay to shop around for a better rate.
In California, the state Department of Insurance Web site (www.insurance.ca.gov /0100-consumers) offers a handy calculator that allows you to get general comparisons on basic annual premiums from dozens of auto insurance companies.
For instance, if you're a married couple in the Sacramento's Fruitridge area with one traffic ticket apiece and no accidents, the calculator shows you nearly 50 annual premiums that vary from $2,027 to $5,685. There's also contact information for every company listed.
"It gives you a ballpark idea of how much insurance rates vary," said Insurance Department spokeswoman Molly DeFrank. "It really does pay to shop around."
A similar calculator is available online to show sample rates for homeowners (including renters and earthquake coverage), long-term care and supplemental Medicare insurance. Or call the Department of Insurance's consumer hotline at (800) 927-4357.
(Note: In all cases, the rates are not firm quotes but a general comparison of sample rates.)
3. Credit cards
Here are two ways to save, depending on whether you carry a credit card balance.
If you're trying to pay off a monthly balance, pick up the phone. With so many credit card offers flooding mailboxes these days, there's lots of competition. Ask your current card company for a lower rate, and if you get rebuffed, call again in another month or so, advises one credit card expert.
"This is one place where persistence pays off," says Bill Hardekopf, CEO of LowCards.com, a Web site that offers comparison rates of about 1,300 credit cards nationwide.
On a $5,000 balance, for instance, if your interest rate is lowered by three points – say, from 18 [percent to 15 percent – you'll save about $12 a month, or $144 a year. If you're paying off the balance at $100 a month, you'll knock off 15 months of payments and save $1,500.
Perhaps the biggest savings of all is sometimes the hardest: Whittle down your credit card debt. Pay more than the monthly minimum to avoid paying excessive interest over the long term.
If you don't carry a monthly balance, consider getting a credit card that pays you. Lots of companies, from Southwest Airlines to Home Depot to Golden 1 Credit Union, are dangling rewards cards to customers. Typically, for every dollar you charge, you accumulate points toward merchandise or services.
"Pick a passion, an interest, a hobby and chances are there's a rewards card that applies," said Hardekopf, noting cards for NASCAR, Toys "R" Us, bookstores, home improvement stores, hotels and airlines. There's even a credit card from Fidelity Investments that lets you accumulate dollars for a 529 college savings plan.
Some cards, like Discover More, offer cash back.
When choosing a rewards card, it's crucial to look at the terms and conditions, especially on how to accumulate and redeem rewards, says Hardekopf. Some companies post it automatically to your account once a year; others require you to call in to request your cash back or risk losing it.
Have a personal finance question? Contact The Bee's Claudia Buck at (916) 321-1968 or via The Sacramento Bee; P.O. Box 15779; Sacramento, CA 95852.
