5 Easy Ways to Save Money on Your Phone Bill

Written by Amy Dunn Williams. Published on November 20, 2006 in: Money Saving Tips
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With the advent of email and instant messaging, many of us are finding that we spend less and less time on the telephone. Some have even predicted the eventual extinction of traditional phone service all together. It's true that it can be much easier to send a quick email to friends and family, but in the end, nothing seems to compare to the sound of our loved-ones voices. For now, telephones are still a part of our lives, and so are phone bills.

What can you do to keep in touch with your family while still keeping your phone bill to a minimum? The answers are well within reach.

1. Study your bill

When was the last time you looked closely at your phone bill? You may just find that you're paying for special features you rarely use. Options such as call forwarding, three-way calling and unlimited use of *69 are unnecessary if you never use them. You'll see a significant drop in your monthly phone bill if you cancel these services, or change your plan to allow only limited availability to those features.

2. Shop around

It's not new advice, but it still rings true: shop around. Depending on the area in which you live, you may have several choices for local phone service providers. They're all competing with each other to get your business, which means that you can be selective in picking the right plan for your family. Most companies offer special promotions for new customers or for customers who are switching their service over from a competing company, so don't be afraid to ask for a deal. And there's no law that says you have to give a lifetime of loyalty to your phone company. If a better price comes along, grab it.

Just as you should shop around for your local phone service, you should do the same for your long distance plan. One excellent service that is very affordable is USA Datanet. You can also choose not to contract with any particular long distance company at all, but rather to use “dial around” numbers such as those beginning with 10-10. The charges for these calls appear on your regular phone bill and are typically far cheaper than calls made through a major long distance company.

3. Go cellular

With the range of cell phone plans available today, you may consider dropping your local land line all together. Many cell providers offer family plans that will allow you to call your family members for free, free or incredibly inexpensive long-distance plans, and lower rates on weekends and in the evening hours. A cell phone goes where you go, so you never have to worry about missing a call, and come with voice mail, caller ID and a wealth of other features – for free. If a traditional cell phone package is still too expensive for your needs, you can opt for a pre-paid cell phone that lets you completely control the amount you're paying each month.

4. Try phone cards

Another excellent option is to purchase rechargeable phone cards. Not only can you use a phone card to make long-distance calls from your home, you can also use them when you travel, when you're at work, and to give your children a way to easily contact you when they are away from home. Calls made with phone cards do not usually register on caller ID boxes; in other words, if you call a friend using a phone card, his or her caller ID will likely show your call as coming from an unidentified caller. To ensure that your calls will be answered, be sure to let friends and family know that you plan to make all of your long-distance calls with a phone card.

5. Embrace technology

VoIP, or Voice over Internet Protocol, is a growing technology available in most U.S. cities. VoIP is available from more than a dozen different companies and can be incredibly inexpensive. The catch, of course, is that VoIP requires a computer as well as a high-speed Internet connection through a cable or DSL modem and special adaptor for your telephone. The equipment is easy to install – subscribers can usually install it on their own – and plans that include unlimited long distance, call forwarding and voice mail can run as low as $20 per month. The downside to VoIP is that it is dependent on both electricity and an Internet connection, meaning that if your power goes out or you lose your Internet connection, you'll have no phone service.

Another new technology on the horizon is digital phone service, usually available through your local cable company. While it is often less expensive than traditional phone service on its own, many cable companies offer an additional discount for customers who also subscribe to cable TV service or cable Internet service. If you're already paying for these services, adding digital phone service to your package may be beneficial. Of course digital phone service uses cable technology, so if there is a cable outage you will be without phone service until your cable can be reinstated.

AOL Instant Messenger, Yahoo! Messenger and other instant messaging services offer the ability to make a voice connection through the Internet, absolutely free. You can download these instant messaging services for free and connect with people on your buddy list in a matter of minutes. You'll need a microphone to speak to each other, and of course this kind of communication requires that you make pre-arranged plans to be on line at the same time. It's not nearly as convenient as picking up the phone, but if you're willing to work within the parameters of this exciting and widely available technology, it can save you a great deal in the long run.

By being aware of the options available, you'll be able to talk to your heart's content without paying a king's ransom in phone bills. There is no reason to pay big money to stay in touch. You just need to know where to look for the best deals.