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3 good methods to trim down your phone charges

By: Scott Bailey

Consumers are definitely feeling the pinch of rising prices. From the gas station to the grocery store, prices are leaping higher. But the telephone bill is an area where savvy consumers can still save. For most people, phone expenses are a substantial element in the family budget. Notwithstanding the fact that telecom prices have fallen considerably in recent years, this is still a cost that can be cut through careful planning. These tips will help you accomplish this goal.

Tip 1: Change to a shared-use plan on your cell phone bill

According to data published by the Kiplinger Letter, the typical cell phone bill in the US runs approximately $55 per month. You might wonder how the average could be $55 given that so many ads for cellular providers promoting $29 or $39 plans. Part of the reason is that a few power users spend $79, $89 or more per month. This is also partly due to taxes and miscellaneous charges such as directory assistance. But a key reason is the fact that cell phone companies zap you on "overage". Let’s say you have 1,000 peak minutes and this month you hit 1,099. At twenty five or forty cents per minute in overage, your cell bill suddenly rockets up $20. Sound familiar? The next month you hit 900 minutes but you don’t see a corresponding reduction on your bill. Some providers say they solve this problem for you by allowing you to rollover minutes. And it is true that the rollover does help increase your peak minutes quota for the following. But even then, you still get hit with overage if you exceed the increased peak minutes quota.

Shared use plans are the best solution for this dilemma. Also called "family-plans", these plans enable you to aggregate the minutes of 2 or more users into a bucket. Since variability is typically a function of individual usage patterns, these factors tend to cancel each other out. Think of it this way: if you and your spouse both had individual plans for 1,000 minutes and one month you hit 1,100 minutes and your spouse reaches 900 minutes, you’re in for overage surcharges to the extent of 100 minutes. If you have a family plan, your total comes in at 2,000 minutes and no overage!

Tip 2: Don’t use your regular long distance landline phone company to make international calls

Most long distance providers offer very good rates for domestic long distance. If you are a reasonably frequent user on a good plan you are probably paying less than five cents per minute. The difficulty is that international rates are still comparably high. For example, fifty cents a minute to South Asia is typical, even if you pay the four to five dollars a month many providers charge to get lower rates.

In recent years, there has definitely been an explosion of superior options. Sometimes called "PINLESS" dialing plans, these offerings enable you to call most anywhere in the world at rates 40% to 70% less from your landline or cell phone without needing to dial a pin code. If you type "cheap international calling" into a search engine you’ll see a lot of options. The basic way they work is that callers register one or more phone numbers with the service and provide a credit card number. They offer you a toll-free number and when you call this number from a registered phone, you can call any country without needing a PIN code. Using the above example, one could cut the charge from 50 cents to 15 cents per minute.

Tip 3: Start using a free conference call service

For a lot of families, phone charges escalate due to the need to have multiple phone discussions between family members on the same topics. It is inefficient but this is the way most of us cope. In the last few years, there have been literally dozens of companies that have launched free conference calling services. All of them work on the same basic principle: they give you a PIN and a toll number to call. If all participants call the same number and enter the same PIN, they are put into a group call. Apart from normal toll charges, there are no charges assessed by these providers. If you have a large extended family, one thirty minute call could easily substitute for 5 to 10 one-to-one discussions for planning a trip or family event.

Unfortunately, it is usually a bit of a hassle to actually arrange these calls in the first place; consumers often are reluctant to familiarize themselves with the mechanics of setting up a teleconference. Rondee is an example of a free conference calling service which is trying to address this issue. The service offers consumers a way to schedule the conference on-line, have the invites emailed out and show all the responses displayed on the website. As with many corporate grade conference call companies, Rondee enables calls to be recorded.

With consumer prices escalating, there’s not a lot most of us can do to fight back. But telephone expense is an area where being smart can lead to substantial savings. Applying these 3 tips will save the typical consumer 30% to 50% on a monthly basis, or several hundred dollars yearly.

Article Source: http://www.articlegush.com

Scott Baily writes about the telecom industry. He consults to a number of companies within the industry and monitors the latest trends in consumer behavior. His clients include free conference calling services such as Rondee.

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