6 Ways to Lower Your Cell Phone Bill
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Cell phones: we all need them, but how much do we really have to pay for them? Depending on the number of lines and extras, the bill can easily cost between $150-$300 per month. That’s a solid chunk of change, especially if you are trying to find more room in your budget to save or pay down debt. Luckily, there are a number of ways to reduce your cell phone bill:
Check for new rates or packages with your current provider
Cell phone providers change their offerings all of the time. If it’s been a while since you’ve looked into your provider’s current plans, take the time to review them online or speak to a customer service representative. You might be able to save on your monthly bill and keep your current level of service. Of course, some people’s needs have changed, especially since the pandemic, so you could also potentially reduce your bill by not paying for data that you no longer need.
Switch to a low-cost provider
There are a number of lower-cost cell phone providers that work off of Verizon, AT&T, and T-Mobile’s networks. You can find plans for as little as $15 per month. Here are some of the popular options:
Mint Mobile: Mint operates on T-Mobile’s network. Their cheapest plan is $15/month for unlimited talk and text and 4GB of data. You can get unlimited data with Mint for $30/month.
Visible: Visible runs on Verizon’s network. Its cheapest plan is $30 which includes unlimited talk, text, and data but speeds may be limited when the network is experiencing heavy traffic. For a premium experience, you’d need to go with their $45 per month plan. By contrast, Verizon’s cheapest unlimited plan is $65 per month (not including taxes and fees) when you enroll in auto pay and paper-free billing.
Metro: Metro runs on T-Mobile’s network. Its cheapest unlimited plan is $40 per month. The price per line decreases as you add more lines. For example, a plan with 4 lines costs $100 per month ($25 per line).
Pay for your phone in full if you can afford it
Back in the day, cell phone providers used to subsidize the cost of a phone in exchange for locking customers into a two-year contract. Now, rather than subsidizing the cost of a phone, many providers allow you to finance it, which has a similar effect. Switching providers is more burdensome (though not impossible) when you have a phone balance you need to pay off first. Providers have been extending these timelines too: whereas they used to offer 24-month payment plans, 36-month payment plans are becoming more popular.
By paying for your phone in full, you are free to switch providers at any time and you’ll have a lower monthly bill. Financing also encourages you to spend more than you otherwise would have on a phone since it feels like the monthly payment is minimal. Paying in full can keep you from overspending on that next upgrade.
Drop the extras
Take the time to look through your actual bill and see what you’re paying for. If you are paying for any extra devices like a hotspot or data plan for an iPad, reassess whether you still need them. Some credit cards actually include coverage of damage and theft of your cell phone if you use that card to pay your monthly cell phone bill. Check your terms to see if your credit card is one of them and what requirements you need to meet to qualify.
Add or drop lines
Adding lines (as long as you are splitting your bill) can lower the average cost for everyone. You don’t need to be related to be on a family plan but make sure you have a certain level of trust with everyone who is on it so you don’t get stuck with the bill. On the flip side, if you are paying the full bill for someone who could be contributing, it may be time to ask them to start contributing or ask that they get their own low-cost plan.
Take advantage of discounts
The big three providers offer discounts for one or more of the following types of customers: teachers, first responders, military personnel, and seniors. Some employers also will partner with a particular cell phone provider to offer discounts to their employees. Check to see whether you’re eligible for any discounts from your current provider or others if you’re willing to switch.
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