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  Listed Article

  Category: Articles » Finance » Article
 

Cell Phones - Weigh the Costs




By Jeff Lakie

If you're considering your first cell phone, there are some specific things
to consider. How you plan to use your phone and what kind of plan you
want for your phone are a couple of the points that you should keep in
mind. Take a look at some of the common issues that people face when
buying cell phones.

Free phones are one of the most common gimmicks cell phone service
providers use to get your business. Cell phones are expensive, and the
newer designs and technology are often very expensive. But you have to
weigh the cost of the particular cell phone being offered in with the cost of
your phone plan.

If you're considering a company that offers a specific cell phone for free,
find out how much that phone retails for. Check the price from the
company you're working with and from some competitors. If the phone
only retails for $100 or so (and yes, there are cell phones still available in
that price range), the phone probably doesn't have the latest security and
may not have some important technologies. You may find that your
phone plan includes free mobile-to-mobile calling, but calls to and from
that particular phone model are still charged as usual. In a case like this,
you may be better off purchasing your phone outright instead of signing a
contract that will keep your service constant for a set period of time.

Carefully consider insurance when you take out your phone policy. Some
people simply buy the insurance without a second thought while others
say it's not worth it. Both may be wasting money. If you have an older cell
phone or an inexpensive model, the insurance may be a waste. But cell
phones aren't especially durable and you may find that you're running the
risk of being without a cell phone if you don't take out the policy.

Check the cost of your phone if you had to replace it. Add up the total
amount of the insurance over the course of your contract (remember that
you'll probably be eligible for a new phone free or at a reduced cost when
the contract is to be renewed) and compare that to the cost of replacing
the phone. Like any insurance policy, the rest is a simple matter of
weighing the risks.

 
 
About the Author
Jeff Lakie is the founder of Cell Phone Resources a website providing information on Cell Phones

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