Things To Say No To During The Recession

Trillion-dollar government bail outs; huge stimulus packages for taxpayers; the recent economic environment has shown us a slew of firsts in terms of dealing with economic turmoil. However, such radical thinking is not limited strictly to President Obama’s recovery plan -- you, as an individual, can be just as effective at bucking the trend to survive and thrive during these trying economic times. We are certainly in a recession, and with everyone hurting, there may be some opportunity to buy some big-ticket items on the cheap, and do away with some extraneous fees and spending at the same time. So, on that notem, we present to you things to say no to during the recession.

Paying retail on big ticket items
We've all heard the phrase that everything is negotiable. This seems to be true for big purchases, but when it comes to shopping for items like appliances or electronics at our favorite retailers, it has been assumed that the price tag you see is final. Retailers are pulling out all the stops in an effort to move inventory and keep business flowing -- and that includes being more flexible with the final price tag on nearly any item. Even the largest chains are feeling the pressure and the corporate offices have given each store more flexibility on a local level if it moves inventory. If you see a big screen TV you like, ask the manager if you can pay the clearance price that is listed for similar, refurbished models. Ask if an item you are really looking for can be placed on the sale rack. Accept the store’s invitation to apply for their credit card to get the first-time purchase discount -- even if you're application is declined, push to get the discount anyway. Local store managers have been given a tremendous amount of leeway to override prices or offer special rates on products and services. You may be surprised to find that if you have merchandise and cash in hand, the stores would rather take what they can get rather than lose the sale entirely.

High credit card interest rates
All creditors undoubtedly enjoy high interest rates, but with everyone’s wallets seemingly shrinking, those higher rates are turning into risks for credit card issuers and are one of the things to say no to during the recession. Creditors know that delinquent accounts and charge offs are on the rise -- and inflated interest charges are not helping the cause. If you're paying astronomically high interest rates, now is a perfect time to ask for interest-rate reductions. If the polite approach doesn't work, threats to move your account elsewhere or even to simply stop paying it can go a long way. Most creditors would prefer to keep a paying customer and sacrifice some profit rather than end up with a big goose egg in the end. Some issuers have actually taken steps to help the consumer. Citi, for instance, just launched a credit card saying it will reduce your rate periodically for paying on time and staying under your limit. If you have solid credit, you may be able to transfer balances to lower-rate credit cards if your primary creditor is not budging on your rate reduction requests. Credit counseling (not debt consolidation) may also be an option, if you don't mind making some sacrifices (i.e., having your accounts closed). Many of these groups are able to get your high rates down to more manageable levels (6%-9%) and facilitate paying your creditors, often for a nominal fee or even no fee at all.

Administrative fees
When things are going great, it's easy to overlook the plethora of fees that show up on your bank statements, credit card statements and even on lease applications. Now with the economy the way it is, every dollar counts, and those fees can add up and are things to say no to during the recession. Take some time to call your bank or creditor to ask them to reverse fees, even if they are technically your fault. For instance, if you are making payments on a credit card and the interest charges put you over the limit, call the issuer, explain that you are trying to pay the balance down and that these over-limit fees are not helping. More often than not, you will be met with a favorable response. If you are applying for financing, transferring a balance, moving into a new apartment, or entering into any form of agreement, note the fee structure -- there are often small, hidden fees all over the place. In today’s market, many merchants are willing to forgo up front fees or basic fees to ensure they get your business. There is no 100% guarantee that any fees will be reversed, but it doesn't hurt to take some time to ask -- the worst you can be told is no. Even if you cannot get the fee waived, you will find that banks, cell providers and others may be able to suggest to you a better plan or service to prevent these fees from being accrued.

Over-tipping
As bad as things are, most of us probably have not fully cut out heading out to the bar for drinks or out to dinner on the weekends. When the bill comes, take a closer look at the amount and maybe reduce your tip amount just a tad, especially if you have a tendency to be extra generous. 15%-20% of the subtotal (not the total and tax) is standard for tipping -- with 20% being reserved for the best service only. You may feel a twinge of guilt for getting cheap on your bartender, but now is the time to have more of a siege mentality. You may have a fear of getting a lower quality of service, but remember that your waitress or bartender probably needs the job now more than ever. They should also be feeling the pressure to provide an elevated level of service to maximize their chances for tips and even to keep their jobs. Want to avoid tipping altogether or feel better about leaving a smaller tip? Pick up your drinks at a local liquor establishment or opt to pick up your food rather than dine in.

penny-pinching pro
Initially, you may feel some level of discomfort about getting labeled as a cheapskate or engaging in a confrontation/negotiation with various parties over fees and pricing, but once you see some savings pile up, you will likely feel better. Adjustments never come easy, and in most cases require us to change how we normally operate. With things the way they are and how they have impacting our lives and our world, we can all agree that we just cannot keep doing things the way we have. There is no need to become a hermit or cancel your cell phone, but stepping outside of our comfort zone when it comes to financial management will go a long way in padding your bank account and giving you the fulfilling feeling of knowing that when the chips were down, you did what you could to make the best of trying times.