COVID-19 has wreaked economic havoc globally and New Zealand is now officially in a recession according to Bloomberg.
Stats NZ reported that incomes have fallen for the first time on record. “Median weekly incomes were lower in the June 2020 quarter than they were a year ago, down 7.6% to $652 a week, in the wake of COVID-19.”
Consumer empowerment: empower yourself
It’s a particularly important time for you to be asking this critical question of yourself and your service providers: is this the best deal for me?
It’s common for contracts such as mobile phone plans to be set with automatic renewal clauses. Unless you are aware of when a contract expires, chances are the contract will continue rolling.
According to an NZ Government Guide to Subscriptions-and-Automatic-Rollovers, businesses must include a clause in contracts before automatically renewing a contract or subscription. For example, a clause such as: “This will be a rolling contract that will automatically renew unless you contact us 24 hours prior to renewal in order to cancel.”
As Silje Dreyer of GetReminded points out, “The responsibility often rests with you, the consumer, to be aware of when contracts are due for renewal. We know that in the busy, fast-paced world we live in, trying to remember when every service contract is due for renewal can be a significant challenge.”
GetReminded app, a prompt to seek out the best deal, at the right time
Australian technology business GetReminded has developed an app to help empower you by prompting you to ask questions of your service providers, at the right time: when your contracts are up for renewal.
The life insurance industry alone in New Zealand is worth $4bn, with 55 players in the market competing for your business.
“We wanted to help position people to get the best deal from their service providers. We think the timing is critical. After initial set up, the GetReminded app sends a series of reminders prompting you about your personal, upcoming renewals and bills. You can then look to get a better deal from current providers or shop around and switch to alternative providers if you aren’t satisfied. One of the times your bargaining power is strongest is definitely at the time of contract renewal, Silje Dreyer of GetReminded said.
It can pay to ask
Price points in the market can vary significantly and it is likely that if you don’t ask for a better deal, you won’t get one.
Canstar NZ has 256 home loans to compare, offered by 10 different home lender providers. The difference between the lowest & highest home loan comparison rates on their database can vary by several percentage points. Seeking out the best deal, based on your individual circumstances could save you a considerable sum of money, particularly over the life of your home loan.
To help you take control of your finances and prevent auto-renewal clauses rolling over without question, download the free GetReminded app today.
Got questions for the GetReminded team? Review our FAQs or send us an email today: email@example.com
Disclaimer: This information is meant as a guide only and should not be taken as legal or financial advice