Why Is My Cell Phone Bill So Expensive?

Phone With Money

Are you tired of paying high cell phone bills? Do you wish there was a way to cut back on your monthly bill? Let’s examine why your cell phone bill might be on the high side and what you can do to correct this.

Increases in Cell Phone Bills over Time

Cell phone bills have increased over time. Part of this was a result of general inflation rates which raises the price of nearly all goods and services. However, another reason why cell phone bills have risen is due to the push for new technology. Cell phone companies are constantly striving to create new smartphones and other smart devices to tie into your cell phone plan. The only way they get funding for their innovations is by raising the prices on their phone packages.

Supply and Demand

Any basic economics class will teach the law of supply and demand. As the demand for a product or service increases, so does the price. If the supply is stronger than the demand, the price will go down. Right now, we are in an era of extremely high demand for cellular products and services. The price of phones and their plans are inherently going to be high.

Other Reasons Your Cell Phone Bill Is Expensive

Here are some additional reasons why your cell phone bill may be high:

  • You are on an old plan that is charging more money for less service.
  • You are working with a cell phone company that charges a lot for what you need.
  • You are making payments on the phone you are using.
  • You are exceeding the limits of your current plan on a regular basis.
  • You have features on your phone bill you no longer need or use.

All of these issues can be corrected if you take action. You don’t have to pay more than your service is worth. You just have to know what you’re being charged and get rid of the excess.

How to Lower Your Cell Phone Bill

The following steps may help lower your current cell phone bill:

1 – Compare Cell Phone Companies
Some cell phone companies charge more than others for the same services. One thing to look at is the coverage area for each phone company and how that compares to the price. You may be able to sacrifice a little coverage for big savings.

2 – Compare Cell Phone Plans
Once you figure out which cell phone company will work best for you, look into different plans they offer. Some may have unlimited talk and text for everyone on the plan, and then all you have to pay for is the amount of data you need. Others offer unlimited data, but you have to pay for the minutes you use. Look over all these options, keeping your current usage in mind. Find the plan that works best for you.

3 – Analyze Your Data Usage
A large portion of current cell phone bills is your data usage. If you are paying for far more data than you need, you could decrease your bill by cutting back on the data plan. Conversely, you could be overspending on data if you are using more than what you have available. Using Wi-Fi can lessen your data usage considerably, so you may want to switch that on as often as possible. After you have done this for a period of time, assess your data usage once again.

4 – Learn to Live without
If you simply cannot afford your current phone plan, you might have to make some sacrifices. You could get rid of your smartphone and drop down to a basic phone so that you do not have to pay for data. You won’t have access to your emails, Facebook, etc., but you will have more money in your pocket at the end of the month.

About John Oldshue

John Oldshue is the creator of SaveOnPhone.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers long distance and cell phone topics for SaveOnPhone.