Consumers are definitely feeling the pinch of escalating costs. From the gas pump to the grocery market, prices are leaping higher. Yet the phone bill is one place where savvy folks can still save. For most people, phone related expenses are a substantial element in the family budget. Notwithstanding the fact that telecom prices have dropped considerably in recent years, this is still a cost that can be cut through careful planning. These strategies will help you accomplish this goal.
Tip 1: Change to a shared-use plan for your cell phone bill
According to data published by the Kiplinger Letter, the typical cell phone bill in the US runs about $55 per month. You might wonder how the average could be $55 given that so many ads for cellular companies promoting $29 or $35 plans. This is partly because a few power users spend $79, $89 or more monthly. Part of the reason is taxes and miscellaneous charges such as directory assistance. But a key reason is the fact that cell phone companies hit you on "overage". Let's say you have 1,000 peak minutes in your plan and this month you reach 1,099. At twenty five or forty cents per minute on overage, your cell-phone bill suddenly shoots up $20. Sound familiar? The next month you get to 900 minutes but there is no corresponding drop in your bill. Some companies claim to solve this problem for you by allowing you to rollover your. And it is true that the rollover does increase your peak minutes quota for the next month. Yet even then, you still get assessed overage if you exceed the increased peak minutes quota.
Shared use plans are the ideal solution for this problem. Also known as "family-plans", these plans enable you to aggregate the minutes of 2 or more users into a bucket. Since variability is usually a function of individual usage patterns, these quotients tend to cancel each other out. Think of it this way: if you and your spouse both have individual plans for 1,000 minutes and one month you get to 1,100 minutes and your spouse hits 900 minutes, you're in for overage charges to the extent of 100 minutes. If you have a shared-use plan, your total comes in at 2,000 minutes and no overage!
Tip 2: Stop using your regular long distance landline provider to dial international calls
Most long distance phone companies offer very good rates for domestic long distance. If you are a frequent user on a good plan you are probably paying less than 5 cents on a per minute basis. The problem is that international rates are still comparably high. For example, fifty cents a minute to India is typical, even if you pay the four to five dollars a month many companies charge to get lower rates.
In recent years, there has definitely been an explosion of superior options. Sometimes known as "PINLESS" dialing plans, these offerings enable you to call anywhere in the world at rates 40% to 70% less from your landline or cell without needing to dial a pin code. If you type "cheap international calling" into a search engine you'll see a plethora of options. The basic way these services work is that you register one or more phone numbers and input a credit card number. They give you a toll-free number and when you call this number from a registered phone, you can call any country without needing a PIN code. Using the above example, one could reduce the charge from 50 cents to 15 cents per minute.
Tip 3: Find a free teleconference service
For a lot of families, phone charges escalate due to the need to have multiple conversations between family members on the same topics. It is not efficient but this is the way most people cope. In the last few years, there have been literally dozens of companies that have launched free teleconferencing services. All of them work on the same basic idea: they give you a PIN and a toll number to dial. If all participants call the same number and enter the same Pin code, they are put into a group call. Apart from normal toll charges, there are no charges assessed by these companies. If you have a large extended family, one thirty minute call could most certainly substitute for 5 to 10 one-to-one discussions for planning a trip or family event.
Unfortunately, it is usually a bit of a hassle to arrange these calls in the first place; consumers often are reluctant to familiarize themselves with the requirements of setting up a teleconference. Rondee is an example of a free conference calling service which is working on addressing this issue. The service offers users a way to schedule the conference on-line, have the invites emailed out and show all the responses displayed on the website. As with many corporate grade conference call companies, Rondee enables calls to be recorded.
With consumer prices escalating, there's not a lot most people can do to fight back. But phone expense is an area where being smart can mean substantial savings. Applying these 3 ideas will save the typical user 30% to 50% on a monthly basis, or several hundred dollars yearly.
