Choosing The Right Cell Phone Plan
Confusion abounds as rates and plans multiply
For Immediate Release: July 1, 2003
ROCKVILLE, Md. — These days cell phones are used for much more than just talking. You can text message your friends, surf the web or take snapshots and email the pictures at the push of a button. But with almost as many cell phone plans as there are cell phones, how do you know which plan is right for you?
"You almost have to work for a cell phone company to be able to understand all the different rate structures," said Steve Rhode, president and co-founder of Myvesta.org, a nonprofit financial management organization. "Most people sign up for plans that sound good on paper without researching all of the available options. That ends up costing them big bucks in the long run."
Rhode says he has been able to save his clients money by negotiating with their cell phone carriers.
"We have many clients on different calling plans with the same cell phone company and they all pay a different monthly rate," Rhode said. "With one cell phone company we negotiated to switch all of our mutual clients to their low cost plan, which saved some people as much as $50 a month without a change in service."
If you're not sure what plan suits you best, Rhode recommends tracking your phone calls for a month.
"Start by figuring out how many minutes you need and if any of them are out of the area," Rhode said. "Then call your current carrier to see if they will switch you to a lower cost calling plan that matches your needs. If not, figure out the cost of terminating your contract and start shopping around. If the termination penalty is less than the savings you'll accrue with a new plan, tell your current carrier to take a hike."
"If you want the convenience and safety of carrying a cell phone but don't use one very often, consider using a pre-paid cellular plan where you can pay as you go," Rhode added. "You'll get all the benefits of having a phone, without the contracts and fees."
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MyvestaSM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.
