Creating financial obstacles !

Research shows that eighty-six percent of Australian families could save money simply by moving from the present supplier of financial or utility services and taking up the offers of their competitors.   It seems that most " just can't be bothered " and industry is fast erecting obstacles to increase the difficulty.

We are constantly urged to " shop around " and seek a better deal on our house mortgage and banking arrangements.   The wise will have a close look at what " exit fees " apply when it comes to a mortgage switch - and changing banks means contacting all those suppliers who are paid by a monthly bank account debit - and rearranging new payment procedures with your new bank account.    The banks have no protocol to transfer regular payment regimes between banks at their customer's request.

Suppliers of services such as gas and electricity - and mobile and fixed line phones - usually tie new customers into a fixed term arrangement with a penalty for early cancellation.   Few seem to remember the starting date of this contract - and the providers are careful to make no mention of the remaining period on their bills or literature.  As a result, uncertainty is the reason few make the switch.

Now a new " lock in " tactic is being employed by the direct supply magazine companies and this is fast spreading to the suppliers of services - such as those providing security screening to our computer traffic.
When the present contract supply period is about to end you get an offer with a nice little discount - if you renew with your credit card number and agree to " automatic renewal " in the following year.

This is a definite " game changer ".   You no longer need to make a choice.  A few days before renewal is due, you get a notice advising that renewal is now under way - and should you wish to cancel - the onus is now on you to make contact and ensure that this is made clear to the company.   Once again, the inertia that stops most people switching accounts kicks in - and that automatic renewal proceeds unchecked.

It is noticeable that this reluctance to make change has produced a new crop of service providers who are offering to do the spadework for the family struggling with bills.    Television advertising is now rife with offers from companies who will gladly seek out the best deal in all manner of service categories - funeral insurance,  gas or electricity supply, car insurance, green slip insurance -  and take care of the paperwork involved in getting new arrangements under way - and saving you money !

The only problem is that such companies usually have a vested interest  in steering enquirers to a supplier of their choice, and often there is a financial reward involved if they do so.   The savings are on a more reliable basis for those who take the trouble to do their own research - and take the trouble to carry through with the effort necessary to tie up the loose ends and paperwork to their own satisfaction.

When it comes to saving money, self interest is the best judge in comparing what is offering !