Frugal Sunday - Lower Your Phone Bill

After taking a Sunday off, I am back with a frugal tip on how to lower your phone bill from the resident expert at About.com

Lower Your Phone Bill
From Erin Huffstetler,

Are you paying more for phone service then you’d like to be? Then, see if one of these seven strategies could help to lower your bill:
Switch to VoIP

VoIP, or Voice over Internet Protocol, is a relatively new technology that allows you to make and receive calls over a broadband Internet connection. Providers include Vonage, SunRocket and a host of others, including many phone and cable companies.

Cost: Plans offering unlimited local and long distance range from $15-25 a month. Smaller, minute-based plans are also available; and start at $9.95 a month. To get started, you may also need to purchase a VoIP router, though many service providers offer a free router with sign-up.

Potential savings: Varies by person. To estimate your savings, subtract the monthly cost for VoIP from your current monthly phone charges.

Pros:

* Calls to the United States and Canada included in the pricing
* International call rates as low as 3-cents per minute

Cons:

* Doesn’t work during a power outage unless you have a back-up battery system
* VoIP may not be compatible with your local 911 system
* Call quality may not be as good as it is on a traditional phone line

Bundle Your Services

Do you have cable, high-speed Internet and a landline or cellphone? If so, bundling all of your services with one provider could be your biggest source of savings.

Potential savings: $20 or more a month.

Pros:

* Only one bill to pay
* New customer rebates and introductory offers may make the deal even better

Cons:

* You’ll probably be required to sign a contract
* Many bundle offers include a low introductory rate, and a much higher rate thereafter
* Taxes and other hidden fees may apply

Ditch Your Landline

Use your cell phone for all of your calls, and cancel your traditional phone service.

Potential savings: The cost of your current landline plan: local and long-distance.

Pros:

* One less bill to pay
* The ability to answer all of your calls on the go

Cons:

* If your cell plan doesn’t include unlimited minutes, you could accrue overage charges
* 911 service for cell phones isn’t available in all areas
* Forget to charge your battery, and you’re temporarily off the grid
* Call quality may not be as good as it is on a traditional phone line

Cancel the Extras

If your phone service comes packaged with a bunch of features—call waiting, caller ID, etc.—you may save money by unbundling your services and shopping a la carte.

Contact your service provider to find out how much a basic, no-frills phone line costs. Then, add on just the features that you need (generally about $5 each).

Potential savings: Varies, but a basic phone line usually runs around $22 a month (taxes and fees included).

Pros:

* You only pay for what you want
* You get to customize your phone services

Cons:

* Less bells and whistles

Comparison Shop

Not satisfied with the deal your current provider is giving you? Then, shop around for a better rate. When it comes to phone service, there are more options than ever.

Potential savings: Varies by customer and locale.

Pros:

* You don’t have to wonder if you’re getting the best rate possible

Cons:

* Requires a bit of effort

Unlimited Long Distance

Do you make a lot of long distance calls? If so, signing up for an unlimited long distance plan could make a lot of sense.

Potential savings: Varies by person. To estimate your savings, subtract the monthly cost for unlimited calling from your current monthly long distance bill.

Pros:

* The same bill every month
* The freedom to make as many long distance calls as you want

Cons:

* Terms and exclusions may apply

Use a Phone Card

If you only make occasional long distance calls, a phone card may be cheaper than paying for traditional long distance service.

Potential savings: The cost of long distance service in your area.

Pros:

* You only pay for the calls that you make
* Your long distance service is portable—just take the card with you when you travel
* Since you pay up front, there are no surprise bills

Cons:

* Most cards have expiration dates
* Connection fees often apply
* Lose the card, and you’ve lost the minutes