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Cell Phone Plans – Do Not Be Ripped Off
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The wireless cell phone store is the modern day candy store. Incredible products down every aisle and sweet temptations behind every click!
Do shop with caution. Too much candy can cause costly problems and endless headache - not just for a visit to the dentist!
Avoid getting ripped off by asking yourself 5 questions.
- 1. Contract or Prepaid?
A contract for wireless cell plan typically obligates you to be locked into a cell phone carrier’s plan for a fixed period (e.g. 12 or 24 months). You are required to pay a minimum fee per month, plus any additional features you use and extra calls you make beyond the minimum usage allowance. Contract plans quite often provide you with a brand new phone – the cost of which is bundled into your plan. It can be an affordable way to acquire a new phone with service. For the strict consumer that can adhere to the plan limits, it is an effective plan with a clear schedule of payments. However, if you find it hard to stick to the allocated usage rate, additional cell phone charges (extra calls, web searches, downloads etc) can very quickly get out of hand.
Prepaid cell phone plans allocate you with a value for cell services for which you pay upfront. Prepaid plans typically do not have fixed period terms. However –beware that often the value you purchase can not roll over to the next period. That is - use it or lose it!
- 2. Flat rate or per usage?
A ‘flat rate’ wireless cell plan provides a package of services a flat rate. For example, a plan for 500 national calls and 50 internationals calls may be offered at $50.00 per month. This is great value for consumers that have regular phone habits and do not exceed this. Beware if you do as penalty rates can be very high!
‘Per usage’ plans allow the consumer to agree to a usage rate – usually calculated by a certain rate per minute. It is great for consumers that have smaller cell usage volumes and is disciplined to stick to the budgeted usage. But if you tend to act on impulse – beware you could be ripped off as usage accumulates.
- 3. What extras do you need?
Do you use your cell just for voice calls? What about web searches, messaging, voice mail and music downloads? If you are looking to add extras to your cell phone service plan, find out the costs and rates. Look for cell plans that include extras that are suitable for you. Extra costs can build up very quickly against you. Sticking to a budget can help you avoid overspending on extras.
- 4. Coverage versus value
There are many cell phone service companies out there offering very affordable plans which could save you a lot of money. However, value does not always equate to quality. It is important to find out that the cell company can provide reliable coverage. Find out whether the service offered is GSM or CDMA type coverage (this is the type of wireless technology used to transmit information) and research coverage range and details for phone authorities and consumer groups. Read up on forums and blogs about coverage issues with certain services. Even if you pay only a small amount of money for your service, unreliability and poor coverage can cost you in other ways – especially if you are dependant on your cell for work or business.
- 5. Read the fine print (And the statement!)
Getting a cell phone plan should be treated like entering in any other commercial agreement – so read the fine print!! This is where the cell phone service companies put in notes on extra charges, penalties and limits to your service. If you are comfortable with the fine print – sign up to the plan. But if you don’t understand the fine print or uncomfortable with any of it, seek advice from third party groups like a consumer advocate. Understand the plan fine print will help you avoid pitfalls and not get ripped off!
It is advisable also to keep a detailed eye on your cell phone statement. Always check the records to make sure you are not being overbilled for certain features and that you are actually paying for what you use. It is not uncommon for mistakes on bills to occur so any time spent going over your cell statement is time well invested.
In summary – it’s important that you get over the wide eyed enthusiasm that comes when you are looking for a new phone plan. All that candy dangled in front of you is very tempting. Ask these 5 questions and if you answer and research them honestly and diligently, you will not be ripped off!
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