How to Pay Less for Your Phone Bill

Back in the day, when I was active duty in the Coast Guard and single, I was able to eat out twice a week without a dent in my pocket and I a phone bill that was around $180.00. Now that I’m a military veteran and a university student, there is no way I could afford that. With a little research and dedication, I found a family plan for $70.00. That’s 2 phones with unlimited talk and text, plus 10GB for each phone. Bonus! Our data is not shared. I’m saving over $110.00 dollars and I’m still with the same provider. That’s $1320.00 saved annually. The catch? I’m in a prepaid plan.

Now, you’re probably thinking, I can’t switch to prepaid! What about my social status?! No one will know you’re enrolled in a prepaid plan. Thankfully, it doesn't even feel like you've switched and there is no way that anyone will know you have a prepaid smartphone, unless you announce it to the world or you’re writing an article about it… ahem.

THINGS TO CONSIDER BEFORE SWITCHING

Check time left in cellphone contract

You can call your provider or check your account online to see when your contract ends. In my case, I had ATT service and they don’t have two-year contracts. Instead, they have installment plans that range from 20 to 30 months to pay off and charge three significant things on your monthly bill:

• Service connection

• Extra Fee for smart phone connection

• Installment plan (phone lease)

As for Sprint, they have a 2-year lease and Verizon has the options of month to month or two year lease .

Pay fee for leaving the phone company

Your phone company may charge you an Early Termination Fee (ETF), if you're abandoning your contract before its completion. This fee can range from $200-$350 depending which company you have. This fee doesn't include the remainder of your phone lease; you'll need to pay that upfront, too.

However, if your phone contract is expired and you're in a month to month plan, you can leave with your phone and there are no fees to pay.

Purchase a new phone or use current phone

Transfer the phone you're currently using to a prepaid plan. All you have to do is switch! The number will stay the same unless you want to change it. Just simply state it when you talk to a representative.

STILL NOT CONVINCED? HERE ARE A FEW REASONS TO SWITCH

1. Experience fast speed and data

You'll have the same benefits of someone who has a $100.00 contract. You’re just not obligated to pay neither installments nor other fees like those exclusively in contacts.

2. Say goodbye to penalty fees

There are no cancelation fees because it's not a contract! You’re paying for the prepaid service upfront, just like you would pay for an ice cream sundae before you eat it. If you don't like the company's phone service, you can switch to another one without penalty. Keep in mind, there is always a start-up fee with any phone company.

3. Enjoy Company discounts

Companies will give you a discount for registering online and others will give you discounts for referring a friend.

· ATT will give you a $5-$10 discount when you enroll on automatic payment plan

· Sprint is dirt cheap, charging $6 per phone lines

· Verizon will give you a $30 monthly discount when you add a fourth line

4. Pay less discreetly

Your phone company won’t announce “This is a prepaid phone” when someone is calling you. You can buy a new iPhone and use it with a prepaid plan. Just know it’s what you can afford.

5. Take a vacation

Now that you have freed up some money, you can plan a vacation! Perhaps it won't pay for a whole vacation, but it could pay for your plane ticket! Horray!

Besides, while your friends are busy moaning about having no money in their pockets, you’ll be rolling in dough (well at least you can afford to buy dough now).

6. Become incognito

Running from the law? Do you feel the uneasy feeling that someone is monitoring your life. Prepaid is the right way! You don’t have to register your account online, with important information. Simply purchase the plan monthly online or in an ATT store and no one will even know it's your phone.

7. Transition to prepaid easily

This is especially if you’ve just finished your contract and just finished paying off your phone. Resist falling into a new contract and buying the new phone everyone is talking about. They will try to convince you. Just say no!

Why are pre-paid plans so much cheaper?

There are two reasons pre-paid plans are cheaper, one is fact and the other, my opinion.

Fact: With prepaid, you purchase the plan for the month, with a phone you already own. There are no hidden fees or extra unexplained charges at the end of the month.

Opinion: Prepaid phones plans have a negative connotation with poverty. The mere utterance of “pre-paid” will dissuade most from even looking into it; therefore, phone companies don't need to raise the demand and rates remain decently priced.

Great news though, you can start planning your next vacation with all your saved money!