Saving money on cell phone service

Mobile phones get cheaper each year compared to the increased number of services they offer. Social messaging and texting are clearly becoming the preferred way of communicating. But the big carriers don’t have to nickel and dime you, hide silly service fees or force you to wait two years before you can make a change. You have choices.

Don’t sign that two year service agreement

There is a growing trend toward using non-contract carriers. At the end of the last decade two out of three phones’ service agreements were not with the big four carriers: AT&T, Sprint, T-Mobile and Verizon. The big four carriers use to argue that two year agreements were necessary to pay for the cost of the phone (reduced cost of phone when you sign a two year agreement). While that might have been true at one time, it certainly isn’t true any longer. iPhone users pay full cost of their phones and still have to sign a two year. At this point, they have just found a way to hold you captive and take your money while guaranteeing bad service. Why provide good service if they know you’re not going anywhere? But many Americans have had enough and are willing to try other options to save money.

The no-contract carriers

Avoid contracts and locked in rates by going with one of the up and comers. In order to compete with the big carriers, MetroPCS, Cricket Communications, Straight Talk, Boost Mobile, and Virgin Mobile have created an interesting niche that may actually become the new normal. They all offer cheaper unlimited calling plans with no contract. Straight Talk has a $45 a month unlimited calling/texting/Web plan. Or for $30 you get 1000 text, 1000 calling minutes and 30mb of data. Straight Talk uses Verizon infrastructure. You could pay $100 a month for a comparable Verizon plan, or try Straight Talk, using Verizon lines for less than half. Get online and check out the deals. It could mean serious savings.

Source: Clark Howard