It used to be that if the cost of your cell phone was too expensive, you could get rid of it, but that is no longer the case. Phones allow us to communicate with friends and family, read the news, and even complete tasks. To put it another way, cell phones are no longer a luxury; they’re a need. Cutting the cost of your cell phone bills, like other basic expenditures like internet and utilities, can put more money back in your wallet than you might imagine, allowing you to save money and go closer to financial freedom. According to CNBC, the average cell phone bill in the United States is $127.37 a month, leaving plenty of room for savings. Fortunately, there are several options for lowering your cell phone expense.
How much does a cell phone bill cost on average?
According to JD Power, the average American cell phone cost for a single user is $70. This works out to $840 each year, or about the same as buying a used automobile. However, by following a few simple measures, you can dramatically reduce your phone bill. Cell phone plans will very certainly be included in your monthly budget.
How much do cell phone bills cost on a monthly basis?
In 2018, the average monthly cost of cell phone service for Americans aged 25 to 64 was $114. That’s a whopping $1,368 per person every year!
In comparison, the average monthly phone cost in the United Kingdom is only $47. This translates to an extra $67 per month, or $804 per year, for the same service in the United States!
So, why are cell phone bills so high in the United States? And what can you do to save money and minimize costs?
We’ll address these questions and offer a variety of options for slashing your monthly cell phone expense by more than half.
How much does an iPhone bill cost each month?
Apple’s new iPhone X costs $1,000 or $999 in technical terms. Who is going to pay $1,000 for a phone?
It’s possible. Especially when you consider that paying $1,000 in one go is unlikely. You can buy the phone in monthly installments from either Apple or your telecom carrier.
If you finance your phone through Apple’s upgrade program, that $1,000 iPhone X that’s for a 64-gigabyte model will end up costing you $49.91 each month. Of course, after you factor in a wireless plan, which you’ll have to purchase separately from a carrier, you’ll end up paying more.
If you finance your phone through your carrier, your bill should be identical. Here’s how much different Apple iPhone models will set you back if you use Apple’s in-house financing scheme. A new entry-level iPhone 7 is now available for $22.88 per month. A top-of-the-line iPhone X will set you back $1,149 per month, or $56.16 per month.
What’s the deal with my astronomically expensive phone bill?
The tax rises to more than 25% of the entire price in four cities: Chicago, Baltimore, Omaha, and New York. For example, Chicago recently hiked its 911 emergency cost from $2.50 to $3.90 per month per line. Hikes like this can be found all throughout the country.
2. Charges are creeping in. More fees are being introduced by cell phone companies for various levels of service. There’s the line activation cost, which might be $35 or more per line. When you buy a new phone or renew your contract, you may be charged a fee. There’s also the early-termination cost, which can be hundreds of dollars.
For years, cell phone customers have been perplexed by roaming costs, which are charged when you go outside of a carrier’s service area. T-Mobile claims that AT&T and Verizon charge unreasonably high roaming fees, and these rates are at the heart of the continuing carrier feud.
3. Plans with unlimited data are hard to come by. Carriers used to be happy with selling unlimited data plans, but that was before they discovered how data-hungry phone customers are. Many companies now have data caps and charge clients if they go over their allotted data. Others don’t set a limit, but instead slow users’ speeds when they reach a specific threshold.
What is the procedure for paying AT&T bills?
Rates for monthly plans are billed one month in advance. A recurring bill start and end date is assigned to each customer. If your monthly billing cycle starts on the 12th of each month, for example, your bill will show monthly costs through the 11th of the following month.
Is AT&T a reliable provider?
AT&T has the country’s second-best 4G network, covering 68 percent of the country. T-Mobile (with 62 percent coverage) and Sprint are both outperformed by this (with 30 percent coverage). Only Verizon, with 70 percent 4G coverage, outperforms AT&T in terms of coverage.
What exactly is the Verizon $30 plan?
Verizon has introduced a new prepaid plan, priced at $30 per month and offering only 500MB of data per month. It doesn’t appear to be a particularly good deal, especially when compared to Verizon’s other prepaid plans, which include 3GB for $40, 7GB for $50, 10GB for $60, and unlimited data for $75.
According to Verizon, 500MB should be enough for those who use very little data, but you’ll want to limit your Spotify and YouTube usage.
Each of Verizon’s prepaid plans, including the new 500MB plan, includes unlimited US call and text, the ability to carry over leftover data from a previous month, a mobile hot spot, and unlimited texting to more than 200 countries. The unlimited package now includes the option for 3G mobile hot spots, which was previously unavailable.
Verizon is also bringing its $5 per day Travel Pass to all of its prepaid lines, allowing customers to phone, text, and use data in Mexico and Canada. Before going on a vacation, consumers can simply add the Travel Pass option to their My Verizon app.
The new 500MB plan will be available on February 20th, but it will likely be difficult to sell compared to Verizon’s existing 3GB for $40 plan.
Updated at 11:45 a.m. on February 16th to include extra content for the 500MB plan’s intended application.