Thursday, February 25, 2016

9 sneaky ways cell phone companies get you to pay more

woman phone



According to a Pew survey, 90% of American adults own cell phones.


In a Cellular Telephone Industries Association report, the average monthly cell phone bill is just over $47, but according to a Time survey, 46% of Americans with mobile phones said their monthly bill was $100 or more, and 13% said their monthly bill topped $200 per month.


Additional charges, fees, and other gimmicks are to partially blame for these expensive bills. Here are some of the sneaky ways cell phone companies are making you pay more:


SEE ALSO: 13 sneaky ways cable companies get you to spend more



They offer new phones for free, or a low fee. 


The “free” phones a company might offer with a new plan are not actually free.


Tech Insider’s Steve Kovach reports that when you sign a service contract and get a “free” or heavily discounted phone, you actually pay the full cost of the phone over the course of your contract through baked-in fees.


A company might raise your monthly payment to make up for the phone they are giving away, and over the course of a two-year contract, How-To Geek reports that you could end up paying over $300 more than you would by buying your own phone.


And, if you try to cancel your service, you’ll still have to pay for the remaining balance on the phone. 



They offer you options to lease or finance a phone. 


Instead of charging you the cost of a new phone upfront, many cell phone companies offer you financing or leasing option.


This usually comes with a low or no fee upfront, but you’re stuck with monthly payments from $5-$35 on top of your regular bill instead, depending on the make and model of the phone.


You will have to pay this fee for the number of months you choose, and can opt to upgrade, buy, or continue leasing it when the time period is up. If you choose to return the phone, you can be charged an “excess wear” fee if there are significant scratches, cracks, and other damages. 


Plus, you might see a charge on your bill under “State & Local Sales Tax — Lease Payments,” which is a tax on top of your lease payment. 


Just like the “free” phone option, you will still have to complete the monthly payments if you decide to terminate your contract (and if you’re leasing, you don’t get to keep the phone afterward, either.) 



They charge you a restocking fee if you decide to return your phone.


If you do choose to return your cell phone after buying it, you must do so within 14 days for most carriers.


But it doesn’t end there: Your carrier can charge you a restocking fee from $35-$50, depending on which company you are with. 


See the rest of the story at Business Insider




9 sneaky ways cell phone companies get you to pay more
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