Save On Your Monthly Household Budget - Talk Cheap!

Talk is cheap. A penny for your thoughts. For most people, these are out-dated sayings.

Telephone services can cost a typical family thousands of dollars a year. You may be able to save an extra $30 or more a month by choosing more cost-effective means of communicating. Credit counselors like our Consumer Credit Counseling Services(CCCS) professionals share some tidbits of information that can really make a difference to your monthly household budget.

Traditional Landline Phones

When was the last time you scrutinized your monthly bill? Gather your phone bills for the past couple of months and analyze them.

• Are you paying for optional features (caller ID) or services (like phone line insurance or inside wire maintenance) that you do not use or need?
• How many long-distance and international calls do you typically make? If the number is significant, you may be able to find a cheaper calling plan. If you make very few toll or long-distance calls, consider disconnecting your long-distance service, and use a dial-around service or prepaid phone card instead.
• Are you paying the operator for tasks you could do yourself? Asking an operator to place a long-distance call or to look up a number costs money.
• Some people (mainly single-person households) get by on cell phones alone. If you do disconnect your landline, be aware that you may need another means to access the Internet.

Cell Phones

Again, scrutinize your last three monthly bills.

• What is your calling plan? Does it match the pattern of calls made by family members? What are your peak calling periods, your average number of minutes, local versus calls those with “roaming” charges, and text-messaging usage?
• Can you afford all the extras? Some people spend hundreds of dollars on ring tones alone! Do you need Web access through your cell phone? Does every family member need a camera phone?
• Does your plan meet your budget? If not, talk to family members about their cell phone usage, perhaps eliminating certain features, sticking to “off-peak” calling times or taking other steps to reduce your bill. There is no law that says every child must be able to play video games on their phone!
• Before signing up for a new plan, ask if you can test it for a few days without paying a cancellation fee. If a rebate is offered, what are the exact terms? Will the new carrier permit you to switch plans or upgrade phones in the middle of your contract period?
• Do not cancel anything without asking about your plan’s cancellation penalties. It might make financial sense to wait for your current contract to expire.
• If you use your cell phone only occasionally, a prepaid wireless plan could save you money. Some plans offer rates as low as 12 cents per minute and let you roll over minutes from month to month.

Other Communications Options

You may find it more affordable to use prepaid wireless plans, prepaid phone cards, dial-around services and calling card plans. When shopping for a dial-around service, ask about fees, per-minute rates and restrictions. Be aware that prepaid cards can carry an expiration date.

An Internet phone service, which permits you to use your home phone and modem to transmit calls over the Internet, can be less expensive than traditional phone services. Sound and service quality can vary greatly, however, depending on the provider. Make sure you pick a reputable company.

A “bundled” service that offers local and long-distance phone service, cable or satellite TV and high-speed Internet access for one monthly fee could present another cost-saving option. Do not make a decision, however, without carefully evaluating the promotional offer. What price can you expect to pay once the introductory pricing period ends? Read the fine print for any surcharges and equipment charges that increase the advertised price. Are there limits on local or long-distance calls? Is there a contract and how long does it run? Finally, if you switch to a ‘bundler” you may have to pay cancellation fees on any existing phone service or Internet service.

For more information on ways to save and stay within your monthly household budget, contact our Credit Counselors at our Consumer Credit Counseling Services(CCCS) Agency.