If your monthly phone bill makes you tally every expense, you’re in good company. Plenty of households shell out a surprising sum to wireless carriers for broad coverage and unlimited plans.
But are you actually using the services you’re being billed for? A closer look at the numbers indicates many Americans could slash their phone costs substantially with a few straightforward adjustments.
Many Americans are paying too much for mobile plans
Across the country, most households rely on a major carrier for their mobile needs. The three biggest providers — AT&T, Verizon and T-Mobile — are names most people recognize.
Research from Whistle Out finds the average U.S. consumer pays about $160 monthly for a plan from a major carrier. Yet numerous subscribers are paying for levels of data and coverage they rarely use. A rough calculation suggests families on unlimited plans could be wasting up to $50 each month.
Low-cost plans can still bring surprises
Switching to a budget provider to save money can introduce hidden pitfalls. Economical plans with weak local coverage or restrictive data policies may lead to extra charges that cancel out your savings.
Here are a few factors to weigh before you jump to a cheap plan, including how to determine whether an offer actually meets your household’s needs.
10 tips to land an affordable cell phone plan
Not all cheap plans are equal. Before adopting a one-size-fits-all solution, consider these points that can help you find a low-cost plan without sacrificing essential service.
1. Do you truly need unlimited data?
Unlimited plans are everywhere, but they aren’t always the smartest option. Most U.S. users don’t consume enough data to justify the higher cost of an unlimited package.
Check your actual data usage before committing to unlimited service. Even if your mobile data use has risen in recent years, consider whether you now spend more time on home Wi-Fi and therefore need less mobile data.
2. Think about a prepaid option
Prepaid plans are essentially pay-as-you-go. If your allotment runs out mid-cycle, you simply top up for more minutes or data.
For those seeking affordable unlimited access, prepaid options like Mint Mobile can be very wallet-friendly. Their unlimited plan can be as low as $15 per month when you prepay three months in advance.
3. Will you use unlimited calling or free international minutes?
If you spend a lot of time on voice calls or have relatives overseas, a plan with unlimited voice or complimentary international calling might be worthwhile. Some plans include rollover minutes, so if long conversations are occasional, you might not need unlimited calling.
Also examine coverage for international calls. T-Mobile, for example, has an international calling option starting at $15 per month that reaches over 70 countries. If messaging is your preference, search for plans with unlimited texting.
4. Family plans don’t require relatives
Multiple lines from a big carrier cost more, but being on a family plan doesn’t mean you must be related. You can join a family plan with friends — just be sure to appoint a reliable account holder to manage the account.
5. Inspect coverage maps for major carriers
Even if a plan advertises wide roaming, verify coverage where you live and work. Verizon generally provides the broadest national coverage, especially for 5G speeds, followed by AT&T and T-Mobile.
No one wants to constantly borrow someone’s hotspot because you’re in a dead zone. Frequent roaming also risks extra fees each time you switch networks.
6. Look into mobile virtual network operators
Mobile virtual network operators ( MVNOs ) lease network access from larger carriers but typically provide cheaper plans. They’re worth exploring if you want lower prices without losing coverage — though speeds may slow during peak usage.
For example, MVNOs like Visible Wireless and US Mobile use Verizon’s towers, letting you benefit from Verizon’s coverage without the premium cost. Many MVNO deals include perks such as a free SIM when you switch.
7. Will you bring your own phone or need to buy one?
Bringing your existing phone to a new plan is usually far cheaper than financing a new device through your carrier. That said, carriers often run attractive promotions if you do need a new phone, so compare total costs.
8. Use promotions wisely and read the fine print
Promotional offers are designed to lure you to a new carrier. But once the promo period ends, will the plan still be a bargain?
Examine promotional terms thoroughly and contact customer service if anything is unclear before switching.
9. Can you get a deal by bundling with streaming services?
Carriers often bundle discounts with affiliated streaming services. For instance, T-Mobile offers perks for adding Netflix, while Verizon has bundles that include Disney+ discounts.
10. Don’t overlook senior, student and military savings
If you qualify, claim those discounts. Many carriers offer reduced rates for seniors, students, first responders and military personnel. Keep in mind some of these discounted plans come from pricier carriers, and you may still save more overall with a prepaid MVNO plan.
Picking the right plan for your household
When choosing an affordable mobile plan, consider these essentials:
- Local network coverage
- Whether your phone is compatible
- How much data you actually need
- The number of lines required
- Potential extra fees
Many top providers offer a 30-day trial, so if the coverage or speeds aren’t satisfactory, you can usually cancel without complication.
Jordan Blake is a senior staff writer at Savinly covering budgeting and money-saving strategies. Over the past decade, Jordan has reported on a wide range of subjects including personal finance, health, politics, education and technology.
