5 Surefire Ways to Reduce Your Cell Phone Bill

By June Ruivivar

Even with today's increasingly handy services, most of us can get as much from our cell phones for half the price, if we cut the right corners.

Here are five ways you can reduce your cell phone bill without missing out on the benefits.

1) Find the Right Cell Phone Plan

If you're constantly going over your minutes, you may want to change to a bigger plan. An extra $20 per month won't hurt as much as the fines you pay for extra minutes, or a $250 charge when you have to make a call from overseas. Brave the customer service line and ask about your options -- you might find a better fit that's just not advertised.

[Trying to find the right plan? We lay out the facts in What is the Best Wireless Plan for You?]

This is often the biggest step in getting your cell phone bill reduced, because finding the right cell phone plan may require you to either upgrade or cancel your current plan and switch providers. Most providers will require you to pay a hefty early termination fee. Figure 1 below compares the contract termination conditions of the top four cell phone providers:

Most providers will let you cancel at any time, but you will have to pay for it. If you choose to cancel and pay the fees, make sure you have the right plan lined up. If, for some reason, it makes more financial sense to wait out the contract, you will have plenty of time to do your research.
 

2) Get Your Evening Rates Adjusted

Providers usually charge less on calls made between 9pm and 6am, and give you a number of "anytime minutes" for daytime calls. Try getting your provider to move the hours earlier if you're always exceeding your anytime minutes. You may have to pay a one-time fee for the adjustment, but the few extra dollars every month might be worth it.
 

3) Minimize Text Messaging

Consumers are usually billed to send and receive messages in a preset text plan. If you text more than you call, it may be practical to give up some voice call features in exchange for more generous text messaging. Most major cell phone companies charge 20¢ per text if you exceed the number of texts allotted in your current plan. On a per-message basis, a slightly larger monthly fee may end up cheaper than a pay-per-text scheme if you send more than a hundred messages per month.

4) Choose the Right Network

Calls within the same provider are normally cheaper than cross-network calls. Since most users call just a handful of contacts on a regular basis, it's smarter to go with the most popular provider in your social circle. This shouldn't be your only basis for switching, of course -- check other services to see if you can save on other features, and make sure any added costs won't wipe out potential savings. Another tip: Family plans aren't just for blood relatives. Consider applying with close friends or roommates.

5) Call from Your Computer

Skype, Gtalk, and Yahoo Messenger allow you to make free voice and video calls to other computers. If your friend is home and you expect a lengthy conversation, make a quick call and talk at length over the computer instead. Or if you make lots of overseas calls, buy some credit and call phones from your Skype account -- it's not free, but at 1.4¢ per minute for international calls (vs. $0.09 - $9.95 per minute for AT&T), it's still considerably cheaper.

Mobile communication is here to stay, especially with the line between phones and computers blurring by the minute. More than ever, it's important to make sure your phone is giving you your money's worth. It's just a few dollars a month, but if you're going to be on your phone for years, you'll want to make the most of it.