Buzz
This month, we encouraged you to reduce an expense that many people overspend on: your cellphone bill. However, before making the change, keep in mind that there are factors beyond just the price that you should consider.
Though discount carriers and plans might provide similar basic services, sometimes for free, there are limitations that may not be worth accepting. For instance, many budget carriers, like Ting and Republic Wireless, rely on the Sprint and T-Mobile networks.
While some users have no issues with Sprint or T-Mobile, their networks aren't always known for top-notch coverage. You'll certainly save money, but if you experience poor reception at home or while traveling, it might not be worth it.
Put simply, value isn't only about cost. So as you explore new phone plans this month, be sure to take these factors into account:
Coverage: Most carriers provide a coverage map that gives you an idea of what to expect from the service. Don’t forget to check online reviews as well, particularly those from people in your area. Their experiences might highlight any potential issues.
Data usage: Most plans, even from larger carriers, include minutes and text messaging at a relatively low cost. Generally, you pay a small monthly fee for unlimited service. The real expense comes from data, so before switching to a more affordable plan, make sure you’re comparing similar options. Does the plan offer enough data for your usual usage? And what are the overage charges if you exceed that limit?
Phone compatibility: Some carriers may not support your current phone, so it’s important to check this beforehand. If you need to buy a new phone to make the switch, it could end up negating the savings you’d get from the cheaper plan.
Foreign usage: Finally, what are the charges for using your phone abroad (and does the carrier even offer international service)? Different carriers handle this differently. For instance, Verizon allows international usage for $10 per day.
These are the key factors to consider, but make sure to thoroughly research your options before making the switch. Ultimately, you want to ensure you're actually saving money without sacrificing service quality (or at least be comfortable with any compromises). Sites like WhistleOut, Wirefly, and NerdWallet are great resources to help you with your research.
