Budgeting & Savings

The True Savings When You Switch Service Providers

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Cell phone service providers are in business to make money. The average monthly bill for a cell phone is approximately $150-$175 or even more if you have a family plan. For most people, this is one of the most expensive items in their budget besides their rent or mortgage and car payment.

Most service providers require a two-year contract for purchasing a phone and using their network. When a consumer signs a contract with a service provider, it usually comes with hidden fees for activation and for early termination. Even though these early-termination hidden fees are usually reduced each month the contract exists, it can still be expensive to switch to another provider. There are several reasons people give for wanting to switch to another service provider, but the main reason is to save money.

Saving money is a priority –

Sometimes consumers realize that they may have exceeded their budget and decide to look for another provider to save a little cash. Before switching to another provider, it is a good idea to review at least three months of statements in order to understand the exact cost of each feature. For example, it might be advisable to choose a cheaper plan, keep the old phone, and avoid paying early termination fees. This might be the time to try to negotiate for a better rate with the same provider. Switching providers is an option if negotiations fail to produce a better rate.

Time for a new phone –

Many people are lured into switching service providers when they want a new phone, but the latest phone on the market comes with a higher bill. Most providers allow consumers to bring their old phones when they switch. It is much less expensive to buy a phone from a third-party seller when switching to a new provider to save money. Most providers offer incentives for new phone purchases, such as promotional pricing on the newest and latest phones. The promotional pricing includes lower rate plans and possibly a gift card as a reward for switching.

Get the best plan and deal –

It’s always a good time to realize substantial savings by switching to another provider. Shopping around for the best plan involves comparing promotional offers and incentives from several different providers. It is a competitive business with both large and small companies. Major providers own their own cell towers, but smaller providers use them to provide great coverage at a reduced rate. They sometimes pass these savings on to their customers.

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Deciding on a plan –

Once the decision is made to switch, the next most important decision is choosing which phone to use. Most providers offer the same basic plans, but there are some significant differences. Each provider offers calling, texting, and data plans. Switching to a new provider is the ideal time to make a change in plans and dropping expensive and unnecessary features. There are several ways to lower your bills and save money each month. When switching to a new provider, it is best to pay for a phone upfront and not in monthly payments. This small investment will pay off in the end in monthly savings. Some service providers offer from $5 to $10 in monthly discounts for establishing automatic withdrawal of payments.

Downgrade and save –

Many consumers find that they were paying for phone features they never used on the old plan with their former provider. Many people rarely use their phone for lengthy conversations with family or friends, but they were paying for unlimited minutes. Downgrading to fewer minutes can save money. Unlimited data is great for those who use it, but is unnecessary for some people. Why pay for unlimited when most of it goes unused? Switching from one service provider to another does help consumers save money.

Many people barely look at their cellular statement before paying it each month. It pays to check each item individually to better understand the cost of each item. Consumers need to be aware of the high cost of goods and services in their attempt to save money. Most service providers want to keep their existing customers, and are willing to help them by reviewing all their available options. They want to help you lower your bills and save more money. Switching providers can save consumers money.

Author: Lauralynn Mangis
Lauralynn is the Online Marketing Specialist for AdvantageCCS. She is married and has two young daughters. She enjoys writing, reading, hiking, cooking, video games, sewing, and gardening. Lauralynn has a degree in Multimedia Technologies from Pittsburgh Technical College.