Save money by looking at all your phone bills together. Are you duplicating service between your local, long distance and wireless services? Try some of these cost cutting suggestions:
Compare rates across different types of pricing plans
Long distance pricing is not only about per minute rates anymore. Today plans are priced on a per-minute basis; with minimum usage charges and additional per-minute rates; with flat monthly rates with unlimited minutes; or with flat monthly rates and a cap on minutes, with additional charges for additional minutes…Confused yet? Fortunately, with a little math, you can calculate the effective per-minute rate associated with any of these types of plans and use it to compare plans. Here's how to calculate the per-minute rate of various long distance plans.
To calculate the effective per-minute rate:
For plans with a flat monthly fee and unlimited minutes, simply divide the flat rate by the number of minutes you typically use per month or that you would expect to use to see if you save money with the flat rate price.
For plans with a flat monthly fee and limited minutes (or plans with a minimum usage fee), first determine whether you will typically exceed the number of minutes included in the monthly (or minimum usage) fee.
- If you will not exceed the number of minutes allotted, simply divide the monthly fee (or minimum usage fee) by the number of minutes in the plan.
- If you will exceed the number of minutes allotted, multiply the per-minute rate charged for additional minutes by the number of excess minutes you use. Then add this figure to the monthly fee (or minimum usage fee) and divide the total by the total number of minutes you will use. For instance, if a plan charges $10 for the first 100 minutes and 20¢ per additional minute and you typically use 130 minutes, you could calculate the effective per-minute rate as follows: Multiply the additional per-minute rate (20¢) by the excess minutes you use (30 minutes = 130 – 100 minutes). This equals $6. Add this to your flat rate of $10 to get $16. Then divide this total by the total number of minutes you use (130). Your effective per-minute rate is about 12¢ per minute.
Package deals
Do you have a wonderful per minute rate with a plan that forces you to pay for extra services you don't need or want? Once you factor in the cost of those extra services, it might benefit you to pay a higher per minute rate so long as you don't have to pay for services you won't use. When you compare long distance plans, it's important that you compare "apples to apples." In other words, compare each rate and service included with each plan. Look at the charges for in-state long distance time, out-of-state long distance time, international calls, daytime/evening/weekend calls, etc. within each plan and determine which plan, as a whole, is a better deal for you.
Update your plan
We recommend reviewing your plan and shopping around at least once per year. Perhaps last year you signed up for a flat rate plan of 500 minutes a month, but this year you are only averaging 120 minutes a month in long distance calling—it's time to update your plan! If you over- or under-estimated your calling needs – or your home, job, or family situation has changed – make changes to your long distance plan in sync with your life.
Pay attention to your monthly bills
Often consumers sign up for a long distance rate without realizing or remembering it was an introductory rate, offered for a limited amount of time. If you pay attention to your monthly long distance bill, you will likely catch additional charges early on. If so, call your long distance company to clarify the rate plan you have signed up for, and if you are displeased, you may also choose to shop around. Sometimes extra charges are a mistake that can add up over time; sometimes extra fees and charges for services you didn't order appear on your bill. Either way, paying attention to your monthly bills will only benefit you in the long run.
Shift calls to your cell phone
Many cell phone plans include nationwide long distance within your "bucket" of minutes. If you have long distance included, and free nights and weekends, you may be better off shifting your long distance calls to your cell phone.
Shop around periodically
Long distance plans are constantly changing. If you want to save money, you should always be on the look-out for a new, better deal. At the very least, you should do some research on long distance plans at least once a year; it's also good to re-evaluate your long distance needs each time you move or change the time of day you are available to make long distance calls.
