The economy has led to many
consumers scaling back non-essential services – but don’t count cell phones
among those.
According to a recent
nationwide poll of Angie’s List members, 98 percent of the respondents own a
cell phone and nearly half said they feel naked without it. Reliability was the
most important consideration when purchasing a phone, with the cost of the plan
a close second.
While cell phone users aren’t
likely to give up their means of mobile communication anytime soon, there are
ways they can still save money by choosing a plan that suits them best.
Cell phone plans
can be confusing and the phones themselves are becoming more complex by the day
with a seemingly endless array of features. You can save money fast by
minimizing bells and whistles you won’t even miss. A little pre-buying research
will help you pick the phone and plan that best meet your communication – and
pocketbook -- needs.
“The No. 1 thing consumers
can do to save money on their monthly cell phone bill is to have a solid
understanding of the terms of their contract and the features for which they
are paying,” said Angie Hicks,
founder of Angie’s List (www.angieslist.com), the nation’s
leading provider of consumer ratings on local service companies, including cell
phone providers.
“Too often, people don’t know
the details of their contract or even when it ends,” Hicks said. “It’s vital to
compare the contract you’re in to other available options to ensure you’re
maximizing the dollars you spend on cellular service. If you’re in the market
for new service, choose your phones, carriers and plans wisely to fit your
needs. Cell phone companies were ranked on Angie’s List as one of the top 10
worst grade earners for 2008, so while affordability is important, so too is
reliability and quality service.”
Angie’s List offers 10 tips to save money on your cell
phone bill:
1.)
Consider Prepaid – If you’re not a
high-volume cell phone user, a prepaid phone might be the way to go. You aren’t
hit with pricey overage charges, aren’t locked into a long-term contract and
you pay for only the minutes you use.
2.)
Check for promotions – If you’re in
the market for a new phone or carrier, check for special prices, promotions or
rebates. Ask about a business discount, which some carriers offer. You can also
get significant savings on the cost of a new phone if you sign a contract with
a certain carrier.
3.)
Understand your contract – Always
read the fine print before you sign any contract. Look for hidden charges,
including text messaging, activation and upgrade fees or insurance. Know when
your contract ends and any early termination fees associated with canceling it.
If you’re not happy with your service or want to negotiate a new contract, you
should first know how much it would cost you to get out of the contract. Most
providers now prorate early termination fees based on how much time you have
left in a contract.
4.)
Track your usage – There are multiple
ways to instantly check your minutes used and available, either by going online
to the provider’s website or by checking directly from your phone. Sign up for
alerts that let you know if you’re about to exceed your allotted minutes. Also,
review your usage monthly. If you consistently find yourself going over your
allotted minutes – and paying high overage fees as a result – then it’s time to
upgrade your plan. If you’re not using the minutes you’re allotted, then it
might be a good time to downgrade or switch to prepaid. If you’re using a
majority of your minutes calling a few select numbers, consider joining a
friends and family or in-network type of plan.
5.)
Eliminate unnecessary services –
Analyze the breakdown of fees on your monthly bill. Are you being charged for
services you don’t need or want? You can find significant savings by ridding
your plan of the “extras” like ringtones, text messaging fees, Internet,
roadside assistance and others.
6.)
Insure it? - Talk
to your provider about the cost of insurance, the coverage period, the length
of the manufacturer’s warranty and any deductable. According to the poll, about one in five
respondents have insurance on their phone and of those, nearly two-thirds pay
less than $5 per month. However, if the insurance deductible is more than
replacing a lost or damaged phone – coupled with the recurring monthly charges
– you may be better off saving the insurance premium.
7.)
Bundle services – Consider combining
phone, Internet and cable/satellite services, which can result in discounted
fees by the provider and more savings. More people have cell phones now than
landlines, so if you seldom use your landline, lose it and save yourself some
money.
8.)
Watch those calls – Each time you dial 411, you’re being charged a premium
fee, so use free options like the Internet, a free directory assistance service
(there are multiple available) -- or dig out that phonebook you’re currently
using as a table leg. Remember, you are charged for
the minutes you use when calling a toll-free number from your cell phone. If
you need to debate a charge with your credit card company, do it from a
landline or during off-peak hours, so you’re not wasting valuable minutes
because you’re on hold.
9.)
Beware of over-texting – We’ve heard
horror stories from parents who purchased a cell phone for their child only to
get a bill the next month for hundreds of extra dollars because their child
sent 4,000 text messages. If you plan to text a lot, sign up for an unlimited
texting plan. Individual text charges add up quickly. If you don’t use text
messaging, make sure you’re not being charged for it in your plan.
10.)
Don’t
be afraid to bargain - Keep an eye out for
special promotions. Have examples of one or more competitor’s lower prices or
better service deals and call the company’s consumer retention department.
Record the name of the person you’re speaking with and note the date and time
you called. These details will increase your credibility if you need to follow
up later. Be prepared to end your service if you can’t get a better deal, but
be sure it’s worth it to pay any early termination fees before you do.
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Angie’s List
is where consumers share ratings and reviews on local contractors, doctors and
other professionals covering more than 425 different categories of service.
Currently, more than 750,000 consumers across the U.S. rely on Angie’s List to find
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List News Releases in our Press Center and read Angie’s blog at http://www.angiehicksblog.com.