What's the cost of doing nothing?

Well, $272 in a year, if you spent just five minutes switching your internet provider

What’s the cost of doing nothing? Well, $272 in a year, if you spent just five minutes changing your internet provider

If I offered you $272, would you say no? You wouldn’t, would you. Nobody in their right mind would. But that’s the cost of inertia. And inertia (doing nothing, because too hard/no time/can’t be bothered) is largely what stops us from shopping around to get a better deal– and that includes changing ISP, aka your internet service provider.

When Credit Simple launched in New Zealand last year, we did a bit of research to find out about Kiwis’ behaviour when it comes to getting a better deal based on their credit history. Astoundingly, only 15% of people have asked for a better deal because they have a good credit score. And while 59% would consider switching banks, 15% don’t because they can’t be bothered (and 51% say they simply ‘like’ their bank – they don’t necessarily get a better deal).

So with this in mind, I shopped around and switched up some of my basic utilities.

I was with Orcon for my home internet, getting 50GB for $82.95 per month. So I decided to switching to Skinny Broadband, at $52 per month for 100GB, and a one-off fee of $99 for the modem. The modem fee almost made me not bother, until I ran the numbers. If I switched now, I would save $30.95 each month, or $371.40 per year. Take away the $99 fee and I’d still save $272.40.

In fact, four months on from changing ISP, I’ve saved $123.80 – which has covered the cost of the model plus $24.80 savings.

The switch hasn’t affected the quality of my internet, either. The Skinny deal is on 4G, which I’d been cautioned about (apparently if the mobile network goes down, you can have problems  –  but I concluded that any provider is susceptible to network issues). But you basically plug it in and connect your devices, and (touch wood!) I haven’t as yet had any issues. Easy as, bro.

Changing ISP was a simple task on one level: you cancel one provider, then sign up for the other. However I had some problems with Orcon, which kept charging me even though they’d confirmed my cancellation notice in writing. I complained, they didn’t respond. I tweeted, no response. I tweeted again, still no response. Then my colleague David Slack tweeted (and he has significantly more followers than I do  –  nearly 10k), and I got a response and a refund (thanks Orcon!).

Even with the hassle of, well, hassling Orcon, I reckon changing ISP is worth it. At our recent launch of Credit Simple Australia, money saving guru Penina Petersen came to speak to our guests, and told me that she washes through all her bills every three months to see if she can save money by switching something (and she usually does). (Penina, by the way, went from being $50k in debt to a million dollar house owner, so she knows her onions.)

Your money awaits, you need only conquer inertia. So go forth, and save.

Credit Simple
Credit Simple

Credit Simple gives all Kiwis free access to their credit score, as well as their detailed credit report. See how your credit score compares by age, gender and community and gain valuable insights into what it all means.

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