Did You Know You’re Bleeding Money Because Of The Darn Phone??
You know the saying, "the phone rings and the money flies"? Well, there's possibly a particular type of fruit that's responsible for that!
You're spending money on your phone. According to PricewaterhouseCoopers, Americans spend an average of $1,266 every year just on their cellphones - which means you're literally spending a lot more than what your phone is worth. Luckily for you, this site has a list of the best smartphones for people with terrible credit so you can get out from under your debt.
So when you're paying through the nose for the latest iPhone, do you question whether it's really worth it? Or wait until your next phone contract to decide if you're actually getting your money's worth? You better move fast -- this new iPhone is so expensive, it could cost $600 by the time you've paid off your credit card. And that's only going to get more expensive as time goes on!
Well, we've got some bad news for you. The phone is just one of many things that are costing you more than they're worth. As with the phone, there's a lot of information out there suggesting how little it would take to fix your finances. Although not all of it is complete crap, there are countless other items you can get rid of that will allow you to never even think about debt again. And one of these items is your cable bill!
If you're not familiar with the term "cord cutting" - it's when you cut the cord on your TV and pay for only what you need instead of getting a bundle that has hundreds of channels you'll never watch. While cable subscribers in many markets have been doing this for years, cord cutting really took off recently when the price for cable TV continued to rise and Netflix became more affordable . Now, many consumers are realizing that the cash they're spending on cable is basically for nothing.
Cord cutting with an antenna has been around for years and we've discussed it in the past . However, a recent report from Leichtman Research Group says that when it comes to cord cutting , we can expect "a lot more" of it. According to the latest data, 31% of TV subscribers say they will cut the cord in 2017 and 26% say they will "definitely" do so a year from now. That's up from 23% and 14% respectively in 2016. While there are still plenty of subscribers that say they definitely won't cut the cord, there are also a number of consumers who haven't had cable for over 20 years.
Finally, if you have a basic plan with one of the phone companies - your calls will probably cost $1 a minute to start. Even though most plans don't charge per call, you'll be surprised how quickly you can rack up an extra $100 or more on top of your monthly bill! Your best bet is to grab a pay-as-you-go phone and make only local calls until you're ready to upgrade. Even then, you can find an unlimited calling plan for less than $40 a month.
In fact, according to a recent survey from Bankrate.com , the average cost of a cell phone bill is $110 per month - which is over double the going rate for unlimited data plans ! So before you get sucked into another contract with your cell phone company, check out our list of the best unlimited data plans first. Just because you're currently on your phone doesn't mean that you're making good decisions!
So if you can't find anything else to cut in your budget, it might be time to do something drastic. So many people are making this change that it's starting to affect the whole industry! According to the DailyMail.co.uk , there's an actual "cellphone graveyard" in India that has over 200,000 unused phones from consumers just like you!
If you're paying for a smartphone - but not using it for data - then you're also paying about 30% more than someone who does have a smartphone! That's right, if your phone is doing nothing but making calls, you're actually paying more than a person who uses data and WiFi regularly. So if money is tight in your budget, perhaps dropping the data feature and only keeping WiFi will free up some extra cash.
As we've discussed in the past , if you want to lower your overall phone bill, that's never a bad idea if you're really strapped for cash! If you're getting overage fees and thinking about dropping to a basic plan - it might be a good idea to get a pay-as-you-go phone instead. You'll only have to pay for what you actually use - plus, the monthly bill will be less expensive since it only covers data usage.
If your goal is actually money-free debt (not keeping up with bills but remaining free of debt), it's going to require some sacrifices in the short term. While there's nothing wrong with cords and cable, it's pretty hard to make the case that they're worth the huge monthly bills.
With more than a dozen networks and an endless supply of shows on Netflix, Hulu and Amazon Prime , cable TV is no longer necessary. That doesn't mean you should ditch your cable box though - it's just a lot of money for something that you're never going to watch. Let's face it - if you're going to pay for cable - it should be for something that is actually worth watching!
If you've ever used your phone in bed, you probably know how uncomfortable those long cords can be! As the weather warms up, so will your bedroom. Maybe you don't want to deal with a big cord in the summer, or maybe you're just tired of dealing with it all year long. Either way, you're not alone! A lot of consumers are thinking about cutting their cord and need ideas on how to do it.
Like anything else with debt, it's always important to see if you can get out from under the pile of credit card bills. You could have a good balance and still be paying penalty fees - but only very rarely are companies willing to negotiate those penalty fees down. There are tools out there that can help you do this such as a debt settlement or debt consolidation , which should be done professionally for best results.
As you're reading this, you may be thinking "what do my credit card bills have to do with my cable bill?" That's a great question, and the truth is - they may not have anything to do with each other. After all, most of us don't go around carrying our credit cards and cell phones at the same time! But on the other hand, your cell phone provider is usually the same people that owns your cable company.
CDs and IRAs aren't full proof either! Yes, they offer some level of protection against taxes and locking in your money for safety purposes.
Conclusion: The only way to really protect your money is to leave it alone. It's not worth lending to a bank or anyone else in hopes of making a little extra income anyway.
Bonds, savings accounts, CDs, and even IRAs aren't guaranteed either! If the market tanks and you're forced to get at that money before you need it - you'll end up losing it faster than expected. And if the economy is booming and you want to take out your money early - there's going to be a penalty fee attached! Either way, these "safe" options aren't necessarily so safe after all.
One of the best ways that people are protecting themselves from risk is through bonds .