Cell Phone Bills Keep Climbing: 4 Ways To Save 50% or More
Millions of Americans recently received a nasty surprise, learning their cell phone bills are increasing.
T-Mobile recently announced it’s eliminating over 1,000 older plans, according to Yahoo Finance. To make matters worse, AT&T announced increases of $10 for single lines and $20 for multiple lines. In addition, neither company is introducing feature upgrades with the price increases.
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Thankfully, you can make certain budgeting moves that don’t necessarily require you to stop using your phone. Here are four simple ways to save up to 50% on your cell phone bill.
Move to an MVNO
Legacy carriers thrive on the misconception that they're the best option to get nationwide coverage. That myth comes at a cost. The average monthly cell phone bill is $145, according to J.D. Power. Moving to a no-contract mobile virtual network operator (MVNO) is the easiest way to cut your bill in half, or more.
MVNOs like Visible, Tello or Mint Mobile operate on legacy networks for a fraction of the cost. For instance, if you leave Verizon, you can switch to Visible since it runs on the Verizon network. Visible offers unlimited data and starts at $25 per month. If you’re paying $80 monthly for Verizon, opting for the base Visible plan saves 69%. Each MVNO works differently, so assess your needs before moving.
Assess Your Data Usage and Change if Necessary
Unlimited data is nice to have, but do you really need it? Even AT&T argues that you don’t need it if you’re regularly connected to Wi-Fi throughout the day. Review your data usage for several months to learn what you're really using. If you're paying for unlimited data or more data than you need, you may be able to save.
If you’re with Prepaid T-Mobile, for example, you can get 12GB of data for $35 per month. However, if you use under 5GB monthly, you can switch to the 5GB plan for $15 — a 57% decrease. Pricing varies across carriers, so you'll need to do some homework to find the best savings.
Cut Anything You’re Not Using
Don’t just accept pricing as it is. Instead, review the advertised price to see what you’re paying for, as you may be paying for something you don’t use or need.
Possible add-ons that may not be necessities include:
Roadside assistance
Device protection
International roaming and calling
Premium cloud storage
Subscriptions you no longer need
Extra device lines for watches or tablets
Each of these can add an extra cost. Some, like roadside assistance, you may already get through your credit card. You may also not travel internationally. Either of these is unnecessary for you, and cutting them can claw back savings, even if you don’t want to leave your carrier.
Snag Available Discounts
Legacy carriers often offer various discounts to customers. AutoPay is a traditional discount many carriers offer, though it's usually only $5 per month. Paperless billing offers similar discounts.
Some carriers also offer larger discounts to eligible students or employees. AT&T is one that offers 20% off per line through its Premium 2.0 Plan. If you're staying with a legacy carrier, check with your school, organization or employer to see if you're eligible for a discount. It won’t be 50% off, but it helps.
Loyalty to a legacy carrier generally doesn't pay off, so you don't need to just accept a price hike. Moving to an MVNO or reducing your data plan are the best ways to cut your bill in half. That’s savings you can put toward other parts of your budget with minimal sacrifice.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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