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Thursday, August 23, 2007

Cutting Your Cell Phone Bill - #1
Multiple Lines

Let me give you a glimpse of my cell phone bill for several months in the past: 10-05: $50.03; 5-06: $88.78; 10-06: $97.04; 7-07: $108.97. It was cheaper each time it changed. No that’s not a typo, it was CHEAPER each change. The first bill was when I had an individual cell phone plan, the cheapest Cingular individual plan for 39.99 per month, with all the taxes worked up to about $50. By May of 2006 I had three lines on the plan, so the $88.78 breaks down to about $29.59 per line. By October 2006, I had four lines on the plan, so the $97.04 breaks down to $24.26 per line. Last months bill represented five lines, at $21.80 per line. As most of you know, we’re a young married couple, with no children. So why do we have five lines? Frugality.

In December 2005, my father and younger brother finished their contract with another cell phone company. They asked if they could join on to my cell phone plan. I agreed, and we split the bill three ways, each paying for our text message usage. By July 2006, Stacey and I were married, and so we needed a phone for her. We added her onto the bill. Some time after that, my parents decided to get another line as a gift for my sister. Each time we added a line, we made each line cheaper. We are now at the maximum number of lines that AT&T wireless will allow on one family plan bill, and we are saving a lot of money to do it this way. My part of the cell phone bill each month is around $40 for two lines! Let’s say that we had all kept our cell phone plans separate from one another.
  • My payments from December 2005 up to last month would be: ($50 x 8) + ($70 x 7) = $890.
  • If my father and younger brother had gotten a new contract together, their payments in this time would be: ($70 x 15) = $1,050.
  • An individual line for my sister would have cost: ($50 x 5) = $250.
  • All together, as a group, this would add up to: $2,190
Instead, we joined the lines together. So:
  • Stacey and I have paid about: ($30 x 8) + ($40 x 7) = $520
  • My father has paid: ($30 x 10) + ($40 x 5) = 500
  • My brother has paid about ($30 x 15) = $450
  • For a grand total of: $1,470
We have each saved money - I have saved $370 in just less than two years, my father has saved $275, and my brother has saved $300 over what he would have paid to have an individual contract for all of this time.

You can really save some money by getting together with close family members and joining lines on cell phone plans. There are of course some catches that you need to recognize:
  • The bill will be attached to ONE person’s social security number and credit. I am legally responsible for all five of these lines and the usage on them. This is fine with me because I can completely trust all of the individuals on this plan. Entering into a 2 year contract with extra people you can’t completely and totally trust would be a mistake, though, and probably end up costing you much extra in the long run (just watch the People's Court to see some examples!).
  • It takes a little work for one person each month to get the figures straight. I spend a few minutes after each bill comes out calculating how much each person owes, and send them an e-mail showing how much they owe for the cell phone that month.
  • The payment has to be worked out in a way that will work for everyone. Each month we pay our parts online with credit cards. This makes it simple for the whole bill to be paid, and at the same time for no one to be paying more than a month at a time.
If you can work out the details, and have some people you can completely trust not to ruin your credit, combining lines can be a great way of saving money on the cell phone bill!

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All Cell Phone Frugality Posts in this Series: Cell Phone Insurance: Is It REALLY Worth It?; Cutting Your Cell Phone Bill #1: Multiple Lines; Cutting Your Cell Phone Bill #2: Cutting the Minutes; Cutting Your Cell Phone Bill #3: Cut the Frills; Cutting Your Cell Phone Bill #4: TMTM - Too Many Text Messages; More Cell Phone Frugality
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107 comments:

Wes said...

Does the phone company know that you family plan includes people that are extended family? (You have separate households from) This does not seem quite honest.

Wes Hazel

JHDalton said...

Yes, I've mentioned it several times in communicating with customer service. I've also given them my address in Arkansas, as the billing address on the account. Then in the same conversation, while setting up a new line, asked that the phone be shipped to Austin, TX or Cookeville, TN. It was quite obvious as I added the new lines that they weren't for people living in my household. Their concern as a phone company is getting new lines of service. The only catch there is that all of the phone numbers are from one area, in our case the Cookeville, TN area.

Thanks for bringing this up, though Wes, because I wouldn't want people to think I was being dishonest. No amount of money saved would be worth dishonesty or deceit, but I'm not at all guilty of that here!

Smiddie said...

The phone company is making more money in the long run. They realize that not all of you would probably be with AT&T if it were not for this plan. Tis a Great way of saving money James, if only i had ppl to trust and someone to figure my bill lol

Tim said...

Nice write up. I'm considering doing this very thing with my parents and brother. I'm curious, though, how do you set up three separate credit card payments online? In my online account with At&T, when I go to autopay, there is no option for paying just a certain amount or for multiple cards. How do you do this?
Thanks.

Tim said...

I think I see a way to do this now. Does everyone just make one-time payments using "make a payment"?
Thanks

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