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Signing up for a mobile phone plan often entails a commitment to a one to two years contract. This can be quite intimidating if you are not confident that the carrier will be able to provide all the cellular services that you need. After all, you would then have an obligation to pay a large sum of money every month, even if you are not satisfied with the service.
You should carefully and thoroughly explore your options first before making a commitment. Without having the crucial information that will enable you to do this, you could end up paying hundreds of dollars for a phone plan that doesn’t meet your specific needs.
Before you sign up for any mobile phone plan, make sure to assess the following key details
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Your individual current phone usage
It is crucial that you determine how many minutes and texts you need and how much data you regularly utilize. This will be your basis for identifying the services you should be looking for before you make a commitment with any carrier.
Keep in mind that your phone use and habits can change significantly, so make sure you give yourself a little bit of room for increasing calls, texts, and data usage.
Are unlimited options right for you?
Many major carriers offer unlimited calls, texts or data as part of their deals. While this offer sounds tempting in theory, in reality, it can be more restrictive. These terms are usually covered by fair use policies, which means an “unlimited” data plan is called such because an average person won’t be able to go over the limit.
The “limit” depends on what is set by the carrier. If you want to sign up for an unlimited plan, make sure to check the fine print before signing. Also, evaluate your phone usage. You will be wasting money on an unlimited plan if you only require a few minutes, texts in a month, or not as much data as you previously thought.
Total cost for a new mobile phone plan
If you are not careful, the overall cost of your mobile phone plan could catch you off guard. What seems like a good deal at the beginning could end up emptying your wallet in the long run.
To calculate the overall cost of your phone plan, use this general formula:
Cost of a Smartphone + (Monthly Bill x Contract Length/Time Spent on Phone Plan) = Total Cost
Using the formula above is a good method for weighing the pros and cons of various phone deals. Sometimes, a good deal may not be as attractive when broken down, once you add the overall costs.
You should apply the same formula to limited offers so that you don’t get easily swayed by enticing promotions to subscribe to a service.
What will you actually pay?
For example, you sign up for a service that costs $40 a month. But when you receive your bill, you find that you are charged more than $40. Possible reasons for the higher cost are unavoidable fees and taxes.
Before you sign a contract, remember to ask your carrier for an actual estimate of your bill. This way, you’ll have a clearer idea of how much you’ll be paying each month. Also, do look out for the following:
- Hidden fees – Not all fees found on your phone bill are mandatory. Be on the lookout for any services that you didn’t approve.
- Overage fees – The best way to save on a phone plan is to only pay for the things you need. For instance, if you’re not a frequent caller, don’t choose an unlimited calling plan. However, make sure you retain some allowance as going over your allotment may cost you more.
Cancellation options
It’s vital that you find out how you can get out of a contract, should you want or need to, before signing. Most carriers will charge a fee if you terminate the contract early. Find out how much exactly you will pay if you decide to terminate the contract, and whether the fine goes down in the long run.
Trial Period for new mobile plan
There are cellular carriers that offer a limited trial period which allows you to cancel the contract without paying any penalties. Check if your chosen phone service carrier offers this trial, which usually spans 30 days. If you’re lucky to get a trial period, use it wisely by testing all the services and operating your smartphone in different places. This will let you know if the plan serves you well whenever you need it.
Go over all the important information
Be a smart and frugal consumer. Before you sign any contract with a carrier, do extensive research to find which phone plan will work best for you. Remember that once you sign, you must comply with the indicated stipulations.
