Why Is My Cell Phone Bill So High?

January 7, 2015
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Why Is My Cell Phone Bill So High? Everyone wants to know how much their neighbor is paying for their cell phone plan every month—am I paying too much? Is Verizon giving me a fair deal? With so much monthly money going towards the cell phone bill, it’s only normal to have a few questions.

One survey revealed that 46% of Americans pay over $100 a month for their cell phone bill, while 13% said their bill was more than $200. As for individual plans, the average monthly bill totals $71, that’s 31% more than people paid in 2009.

Of course there are some things to take into consideration. For one, people purchase far more gadgets attached to the cell phone bill than ever before. There’s the tablet, wireless Internet router, and more, all of which add up faster than a couple of black and white flip phones ever could. Kids are also getting cell phones at way earlier ages these days, upping the average cost a family with kids pays for their plan. But these are not the only reasons the cost of your cell phone plan has gone up.

If you’ve noticed the cost of your phone bill going up and you don’t understand why, it might have something to do with one of the following 5 reasons cell phone bills continue to get more expensive. Plus, we include 3 tips how to save money on your next cell phone bill!

5 Reasons Your Cell Phone Bill Keeps Going Up

  1. Increasing Taxes

In 2006, you paid around 14% of your average cell phone bill in taxes and fees. Today, you are paying closer to 17% in taxes. Federal, state and local taxes are included, and the breakdown of numbers goes as follows: 11.2% for state and local taxes, and 5.8% federal taxes. If you live in Chicago, Baltimore, New York, or Omaha, your fees have increased even more, totaling just over 25% of the bill.

  1. Unlimited Doesn’t Really Mean ‘Unlimited’

It is hard to find a plan that actually offers unlimited everything, which is why some people pay for the most expensive plan option and still end up with overage charges. There was a time, not too long ago, when cell phone companies truly did offer unlimited plans. Then, cell phone companies realized just how much money they could make charging overage fees instead of offering everything unlimited. In fact, The Wall Street journal recently reported cell phone companies have enjoyed a $5 profit increase per customer since 2010. (Read more)

The crazy part is that they have pretty much gotten away with it, largely because…

  1. We Have All Turned Into Data-Hungry Hogs

You can never get fast enough Internet or enough storage space in the cloud! There are too many movies to stream, and too many songs to store. The obsession with storing more and more data is why we agree to pay companies like Verizon and AT&T so much money to just give us more data! Right now the average person with a smartphone uses around 900 megabytes per month, this number is expected to rise to over 3,500 megabytes by 2020.

3 Tips How To Save Money On Your Cell Phone Bill

Cell phone companies are actively seeking ways to make more money off of you. Yet, part of the reason costs have gone up so drastically has to do with the modern day obsession with cell phones. You certainly can’t live without a phone, but with inflation like this how long will you be able to afford one? Here are 6 tips how to save money on your next cell phone bill!

  1. Check For Employee and School Discounts For 10-30% Off Your Bill

Cell phone companies offer all types of special deals to Fortune 500 companies, but they also offer the same deals to many medium and small businesses. You might have to do some research to see if you qualify, as these benefits are not always advertised.  Many carriers apply the same types of discounts for students.

  1. Turn Off In-App Purchases

Keep your kids from racking up countless dollars with mindless in-app purchases by keeping the ‘buy’ button locked with a password only you know. For both Google and Apple phones you can easily switch this security feature on through the Settings menu.

  1. Ask Questions And Carefully Read Over Your Bill

Cell phone companies make mistakes, which won’t be discovered unless you carefully read over your bill each month. There is also the chance you are unknowingly being charged for something, such as roaming or streaming too much data. By carefully reading the bill you can identify every last charge and find easy ways to cut back.

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