Penny pinchers now have a great way to save money on cell phone bills. Telecommunications Research & Action Center (listed in order of the largest to smallest possible savings) :
- Prepay your way if you may.
- Cut the cord to landlines
- Plan your plan, change for the best.
- Buy not so fancy but functional cell phones - no Ferraris on a budget.
- Be sure your cell phone is on the "Do-Not Call" list to save minutes.
Here are five tips from THE PENNY PINCHER’S GUIDE TO SLASHING CELL PHONE BILLS
1. Get rid of expensive
cell phone fees by switching all or some of your cell phones to prepaid
cell service. The average “postpaid” (contract-based) cell phone user
pays about $50 a month to be locked into a long-term contract and also
faces the risk of steep overage charges of up to 45 cents a minute and
painful early-cancellation fees that can cost $150-$200. If possible
without incurring a penalty, switch to a prepaid service where you buy
a phone for as little as $15 and pay only for the minutes you use,
without any contract or cancellation fee. While prepaid cell phones are
not for the most intensive wireless users, they are well suited for the
millions of typical cell phones users talking 200 minutes or less a
month. If you have more than once cell phone in the family, you can
experiment by substituting a pre-paid cell phone for at least one
post-paid cell phone.
cell phone fees by switching all or some of your cell phones to prepaid
cell service. The average “postpaid” (contract-based) cell phone user
pays about $50 a month to be locked into a long-term contract and also
faces the risk of steep overage charges of up to 45 cents a minute and
painful early-cancellation fees that can cost $150-$200. If possible
without incurring a penalty, switch to a prepaid service where you buy
a phone for as little as $15 and pay only for the minutes you use,
without any contract or cancellation fee. While prepaid cell phones are
not for the most intensive wireless users, they are well suited for the
millions of typical cell phones users talking 200 minutes or less a
month. If you have more than once cell phone in the family, you can
experiment by substituting a pre-paid cell phone for at least one
post-paid cell phone.
How many consumers
might save in this way? According to 2008 data from the Cellular
Telephone Industry Association (CTIA), there are 262 million cell phone
subscribers in the United States. Of that group, only 16.9 percent are
prepaid cell phone users. The fewer than one in five Americans using
this lower-cost option is considerably under the 37-89 percent of the
cell-phone market that prepaid services account for in other countries,
including most developed nations, according to the CTIA.
might save in this way? According to 2008 data from the Cellular
Telephone Industry Association (CTIA), there are 262 million cell phone
subscribers in the United States. Of that group, only 16.9 percent are
prepaid cell phone users. The fewer than one in five Americans using
this lower-cost option is considerably under the 37-89 percent of the
cell-phone market that prepaid services account for in other countries,
including most developed nations, according to the CTIA.
2. Determine if you are
a good candidate for “cutting the cord.” One way to really slash your
overall telecommunications spending is to dump your old-fashioned
landline phone in favor only using a cell phone. And then switch to a
pre-paid phone for your wireless service. It’s not for everyone, but 16
percent of Americans already have made this leap into “wireless only”
cell phone service, according to CTIA data. This is a good option for
people who make relatively few calls and do not have children at home.
It is a great way to save a lot of money if you or your family is in
financial crisis: You might be spending a combined $100 or more on
landline and contract-based cell phone services and could replace that
with $10 a month in carefully used pre-paid cell phone minutes.
a good candidate for “cutting the cord.” One way to really slash your
overall telecommunications spending is to dump your old-fashioned
landline phone in favor only using a cell phone. And then switch to a
pre-paid phone for your wireless service. It’s not for everyone, but 16
percent of Americans already have made this leap into “wireless only”
cell phone service, according to CTIA data. This is a good option for
people who make relatively few calls and do not have children at home.
It is a great way to save a lot of money if you or your family is in
financial crisis: You might be spending a combined $100 or more on
landline and contract-based cell phone services and could replace that
with $10 a month in carefully used pre-paid cell phone minutes.
3. Get on the right
plan and be smart about using your minutes. Give up on frills, reduce
your total minutes and move down to a more basic rate plan. This might
mean putting a block on texting from phones, limiting use and putting
your kids on a budget. Be creative in managing the minutes and features
between your land line and your cell service. For example, if your land
line has unlimited long distance you might consider using it more and
reducing your minutes on your cell plan. Or vice versa, going to a more
basic landline plan and doing your long distance calling on your
wireless plan. Consider switching to a lower-cost cell phone plan, and
then shifting your calling to night and week-end times that don’t burn
plan minutes.
plan and be smart about using your minutes. Give up on frills, reduce
your total minutes and move down to a more basic rate plan. This might
mean putting a block on texting from phones, limiting use and putting
your kids on a budget. Be creative in managing the minutes and features
between your land line and your cell service. For example, if your land
line has unlimited long distance you might consider using it more and
reducing your minutes on your cell plan. Or vice versa, going to a more
basic landline plan and doing your long distance calling on your
wireless plan. Consider switching to a lower-cost cell phone plan, and
then shifting your calling to night and week-end times that don’t burn
plan minutes.
4. When it comes to
cell phones, don’t buy a Ferrari when all you need is Honda Civic. An
independent study by Nielsen Mobile suggests that fewer than one in
five cell phone users (18 percent) have downloaded ringtones so far
this year. Only about one in 10 (11 percent) downloaded software. That
means many consumers are paying to use a phone that is more
feature-intensive than they actually need. Keep in mind that most cell
phones with all those extra bells and whistles involve either higher
monthly base bills or add-on fees that can send your cell phone bill
needlessly soaring well over $50-$60 a month. Don’t waste money on a
cell phone that can do more than you will ever want or need it to do!
cell phones, don’t buy a Ferrari when all you need is Honda Civic. An
independent study by Nielsen Mobile suggests that fewer than one in
five cell phone users (18 percent) have downloaded ringtones so far
this year. Only about one in 10 (11 percent) downloaded software. That
means many consumers are paying to use a phone that is more
feature-intensive than they actually need. Keep in mind that most cell
phones with all those extra bells and whistles involve either higher
monthly base bills or add-on fees that can send your cell phone bill
needlessly soaring well over $50-$60 a month. Don’t waste money on a
cell phone that can do more than you will ever want or need it to do!
5. Don’t let other
people “steal” your minutes. Most telemarketing calls are made today to
traditional landline phones. However, as more and more people cut the
cord (or even just start supplying cell phone numbers to store clerks
and in filling out online forms), junk cell phone calls will rise. Make
sure to sign up all of your phone numbers - including your cell — for
the Do Not Call list at https:// www.donotcall.gov/ or call 1-888-382-1222 from the phone number you wish to register.
people “steal” your minutes. Most telemarketing calls are made today to
traditional landline phones. However, as more and more people cut the
cord (or even just start supplying cell phone numbers to store clerks
and in filling out online forms), junk cell phone calls will rise. Make
sure to sign up all of your phone numbers - including your cell — for
the Do Not Call list at https:// www.donotcall.gov/ or call 1-888-382-1222 from the phone number you wish to register.
For more consumer tips, visit TRAC at http://www.trac.org/consumer/.