Keeping Long Distance Bills In Check

Do you cringe every time you see the phone bill in the mailbox? Do your monthly payments create your own personal version of "national debt?" It may be time to look at some tips and suggestions for pruning down your costs, not your talk time, with some creative management.

"Many people can save money on phone calls by using a mix of services," comments Rosemary Kimball, director of media relations for the FCC's Consumer & Government Affairs Bureau. "They use the traditional wire-line phone service, wireless phone service and prepaid calling cards for different types of calls."

The first step in saving money on your phone bill is to negotiate for the best possible rates on your traditional long-distance service. Consider these tips:

Know your calling pattern -- where and when you call. If you make a lot of long-distance calls, look for a plan with a monthly fee, but a relatively low per-minute charge. If you make the bulk of your long-distance calls in the evenings or weekends, choose a plan whose rates cater to these times. If you make most of your long-distance calls within your own area code, look for a plan that offers the lowest rates for interstate toll calls.

Shop around periodically. It's up to you to stay informed. Keep up-to-date on the newest calling plans and compare rates among companies. You can find information on the various calling plans on long-distance telephone company Web sites.

People who do not have Internet access, can call or write their long-distance company to learn how to obtain information. Many companies are also inserting statement stuffers to promote new plans or promotions.

Be aware of the scams and fine print. Among these are "slamming," where a person's phone service is switched to another carrier without permission. It is also important to understand the fine print. If you are at all uncertain about a plan being offered via a telemarketer, ask to have information outlining the plan sent to you or ask for a Web address that can help you out. If the sales representative is hesitant to do either, you can figure the offer is probably too good to be true.

Offers of free phone cards or limited-time, super-low rates should also ring a warning signal. There is nothing illegal about these kinds of offers, they can just be confusing to a consumer who does not carefully read or fully understand the details. Another legal plan, but often misunderstood, is calling circles. To insure the cheap rate, the people you call must not only be on your specified list, but be utilizing the same carrier service. If you call someone outside that limited circle, you may be hit with higher-than-usual rates.

Getting Creative: Cell Phones and Phone Cards

In today's world, nobody says all your phone contact has to be through the traditional, direct-dial, long-distance service.

With the improved quality and lower cost of cell phones, many people are choosing to use them for personal communications instead of or to complement standard long distance. Many cell phone plans offer free, unlimited weekend and late evening minutes and a set amount of free minutes during the week. If you are a frequent user and you can contain your calls to those times, you could save substantial money over standard long-distance service.

"We urge potential wireless customers to ask the carrier to give them some time -- a couple of days to a month -- to take the phone and test it on areas where they will be calling before committing to a long-term contract," says Kimball. "It's also important that customers know what the roaming charges are, if any, and whether unused minutes carry over to the next month."

Some people have chosen to forgo a traditional long-distance service altogether and simply engage only their local service. We wouldn't advise this, however -- choose a long-distance plan with no monthly fee, but a higher per-minute rate. If you never use it, you won't have to worry about the cost, and if you should need it, it's always there.

Another option for long-distance users is a prepaid phone card. Traditionally popular with students, business people and travelers, phone cards can also save you money on your own home line when you use them during the hours in which your traditional long-distance rate is higher. In fact, with rates lower than 4 cents a minute, they may offer the best rate any time.

When purchasing a prepaid phone card, which are sold in either dollar amounts or by number of minutes, consider these tips:

Purchase a card that offers a long-term usage date or no expiration date. Purchase a card from a reputable company -- ask around and find one that receives high marks from other users.

Watch for cards that have hidden charges or rates higher than advertised.

Watch for cards that charge you even when your call does not go through.

Purchase a card with a small number of minutes and the least amount of money until you are satisfied that the card is providing the service you want at the charge you expect. You'll want cards that will allow you to purchase more minutes easily and without extra charges.

Courtesy of ARA Content