How to Save Money on Phone Bills

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If you're wondering how to save money on phone bills, you're not alone. While phone bills aren't quite as expensive as a mortgage or a car payment, this is still one area in which people committed to frugal living can find a few ways to save some cash.

Basic Tips for How to Save Money on Phone Bills

Saving money on phone bills requires knowing your needs and being willing to do a bit of comparison shopping.

See if You Qualify for Financial Assistance

Certain low-income households in the United States can receive assistance with basic telephone service through the Low Income Program of the Universal Service Fund, which is administered by the Universal Service Administrative Company (USAC). You can apply for Lifeline, Link Up, and Toll Limitation Service (TLS) support through your local telephone company or a designated social service agency. To learn more about how this program works in your state, please visit the Lifeline Support Web site.

Even if You're a Regular Customer, Ask for Introductory Offers

Have you ever seen an advertisement offering a great deal for your current phone service, but it's only for new customers? This doesn't necessarily mean you can't take advantage of the offer. Ask to speak to a customer service representative from your phone company and explain that you are happy with your service, but you need to be able to stick within your budget.

This same basic strategy also works if the introductory offer is for a different company, but you don't want to go through the hassle of changing carriers. Most phone companies will be eager to keep you as a customer, even if it means they must match a competitor's offer to prevent you from switching carriers.

Tips for Cell Phone Users

If you have a cell phone in addition to your home phone, there are a few more money saving tips to try.

Drop Your Landline

If you're always on the go, one easy way to learn how to save money on phone bills is to drop your landline. As of May 2009, 20 percent of all households in the United States had only cell phones, and an additional 15 percent of people with landlines used them only to connect to the Internet.

However, if you do choose to go this route, you need to be confident in the reliability of your cell phone service provider and get in the habit of making sure your phone is fully charged at all times.

Get a Cell Phone Plan that Fits Your Needs

When signing up for a cell phone plan, a lot of people tend to underestimate the amount of minutes they need. Overage fees can be very expensive, however. If you're going over your minutes more than once a year, it's time to upgrade your plan. The extra monthly expense is still cheaper than being hit with unexpected overage fees, plus you'll eliminate the stress of worrying about whether or not you have enough minutes to make your calls.

Charges for going out of your calling area are another sign you need to upgrade your plan. Going from a small region to a larger one, or even to a nationwide plan, will eliminate these pesky fees and save you money over the long run.