Let’s face it: Times are tough and you’re not likely to qualify for a multi-billion-dollar bailout. You’ve probably already cut back on shopping, eating out, movies and junk gadgets.
Still not saving enough money? Take a second look at your cellphone. The average cellphone user ends up spending $600 a year on wireless phone service, which means there’s plenty of room in there for some scrimping. While there may be some crazy texters and manic talkers around, it is likely most of us use much less than what we paid for.
Here are five ways to slash your cellphone bills and save more of that scarce moolah:
Unlimited isn’t always good
News flash: Cellphone companies don’t really care about you as a person. What they really care about is ARPU, or "average revenue per user," and how to make it bigger. That means finding clever ways of getting customers to sign up for larger monthly contracts. While Sprint, Verizon or AT&T’s unlimited voice and texting package for $99 a month may seem great, it is likely you will use less than half of what you paid for. How much are you really texting? What about voice calls? Do you yap that much? Sure, if you run over your usage it can be expensive but a lot of us don’t.
As a first step analyze your cellphone usage by looking at the past few months’ statements. Find out how many minutes you really use and then match your plan to that. Or try Billshrink, a new website that claims to help you find the most optimal plan. Instead of the $40 plan go for the $20 plan if that’s all you really need. Less is more.
Go prepaid
Service providers like long-term contracts because they lock you in as a customer for two years. While contracts are often the only way to get the best phones, they can get pretty expensive. For example, $200 for a phone and $60 a month on contract adds up to $1,640 over two years.
Check out prepaid phones that you can buy for just about $15 and use with a prepaid card. If you are not a power user this could really help cut your bills down. Some service providers even offer rollover minutes on their prepaid plans, with the condition that you top up to a minimum every month.
Prepaid plans work well for cell phones users who talk 200 minutes or less a month, says the Telecommunications Research & Action Center, a non-profit organization. And if you have more than once cell phone in the family, try substituting one pre-paid cell phone for at least one post-paid cell phone, they suggest.
Cut out the bells and whistles
Do you really need that data plan? Take another look at your phone, too. It’s nice to have the latest phones but you can save money if you are willing to give up on having the current talk of the town. Cut out downloads of ringtones, games and other online services that your service provider may be doing a hard sell on. Cut! Cut! Cut! Tough times call for tough measures.
Don’t cut the cord just yet
About 16 percent of Americans have only cellphones and no landlines. That means for the other 84 percent, it is time to take another look at the black box sitting at your house or work.
When at home use your landline phone instead of burning up minutes on your cellphone. Instead of calling friends and family during your commute, head home and use your land line. Long distance calling? Don’t touch that cellphone!
Buy online
Websites of most service providers offer an extensive range of phones that often come free with a one-year contract. Some of those phones could cost about $50 in-store with a contract or even more. If you really want your latest phones try sites such as Wirefly or Amazon.com for some good deals. In-store isn’t always the best.
Photo: (Milica Sekulick/Flickr)