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Creative Commons License photo credit: AH!Photography

These days if you don’t have a cell phone people tend to look at you a bit strangely. Like you just told them you live in a cave. Like it or not, cell phones are an essential (and to many people necessary) part of everyday life.

But they can also be very expensive if you’re not careful with some people spending far more money than they need to on their monthly bills. As someone who spent a few years working in the cell phone industry I’d like to explaint today some of the ways in which you can save significant sums of money on your cell phone bill.

Go Prepaid

Many of us are on contracts because if you’re a heavy user of your cell phone these can still work out far more cost effective if you are smart with how you use your phone. But one way to control your costs is to consider going prepaid so you know you’ll never spend more than you want. If your contract has expired it is typically very easy to move your phone over to a prepaid plan though some people find the impracticality of having to top up regularly an annoyance.

Change Your Tariff

Take your last three cell phone bills and work out the average number of minutes of calls you make and the number of texts that you send. From this work out the best tariff for you and contact your cell phone provider to try and make the change.

Surprisingly some people can actually save money by increasing their plan rather than reducing it because on a lower plan you may only have a small number of inclusive calls and may pay a premium for any phone call over that limit. Doing some simple math here can really save you some significant money each month.

Understand Your Inclusive Calls

Speak to your cell phone provider to understand firstly how many inclusive calls you get each month but also the fine print on those calls. Many providers exclude certain numbers from these inclusive calls such as premium rate numbers and they may have a limit on how long you can talk for before they start charging you.

As an example, even if I have two hours of calls available with my provider, if I talk for more than an hour on a single call (which can happen with me) they start to charge me on a per-minute basis at minute 61. So check this out so you exactly what is included and what isn’t.

Keep Your Old Phone

Do you have an upgrade due where you can change your phone to the latest model? If so, consider speaking to your cell phone provider about keeping your phone but issuing you with money off instead. Some providers set aside a certain amount of money that they assume it will cost them to provide you with a new phone.

However if you keep your old phone, they get to keep this money and so may give you some of it back. My own cell phone provider gives me $100 each year if I renew my contract but keep my old phone rather than demanding a new one and this is the equivalent of several months of free calls for me.

Threaten To End Your Contract

Cell phone companies are in a competitive business and are desperate to keep you as a customer. If your contract has ended, consider ringing them up to complain that your monthly bills are too high and that you’re considering leaving.

Many of these companies have “customer retenton teams” who are authorized to offer crazy deals to keep you as a customer. On several occasions I have halved my cell phone bill for the next 12 months just by threatening to leave.

Disable The Internet

Unless your plan includes internet access you will likely be charged a premium if you try to access the internet on your phone. Worse, one can sometimes log onto the internet accidentally by pressing the wrong button on your phone. So unless you *need* the internet on your phone, consider disabling it so you won’t accidentially run up extra charges this way.

Text Don’t Talk

Texting is often cheaper and easier than calling your friends so consider relying more on this medium of communication.

Insure Your Cell Phone

Replacing a cell phone can be an expensive business so consider insuring it. Many cell phone companies offer cell phone insurance but you can often find it cheaper elsewhere. Specialist insurers exist who concentrate on cell phones and some bank accounts and household insurance policies cover your cell phone by default. Try ringing your bank and insurance company to see if they cover it for free and if so give them the details they will need to register your handset on their system.

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