Many of those dealing with the gamut of debt problems are hit with the extra blow of a job loss. But even those focused on living by a budget and trying to overcome troubles through financial planning and management can accidentally make the wrong cuts. This article is specifically about one particular “wrong cut”: a cell phone.
I was recently told about someone’s pride in cutting out their cable TV, newspaper subscription, gym membership, online movie rental account, and the Internet service. “I live around the corner from the public library, with plenty of free access” they told me. Fair enough. But they also mentioned having cut out an expensive cell phone and its corresponding minute plan in order to simply keep a land line in the home, which was cheaper than their current mobile contract.
Someone unemployed should have a cell phone because landing a new job depends on speed of access to a potential interview, resume follow-up, or simply to impress upon a human resources manager than you are part of the “wired” economy. Potential employers will not be impressed at your ultra frugality if they find out you’re cell phone-less: they’ll think you’re making a bad decision and not setting priorities correctly.
My acquaintance from the coffee shop should dump the land line and instead only have a cell phone. She can get rid of her fancy phone for a no-frills version that comes free with a barebones minute plan and pared-down talking habits. But even if she can’t financially justify a cheaper, basic plan, there is yet another possibility: a free cell phone with free service.
Americans who fit an income profile that is extremely modest already qualify for government-sponsored land line service. But recently, telecommunications service providers have found they can profit from offering a barebones level of service while pocketing the subsidy. As Matt Richtel at The New York Times writes, To be eligible for the program, known as Lifeline, a person must meet federal low-income guidelines or qualify for one of a handful of social service programs, including food stamps or Medicaid.” The only concern, and this is a very important one, is for the person opting for the free government cell phone and plan to make sure that the overage charges on the minute plan are modest. In fact, it is worth it for someone to compare a subsidized plan to a no-frills standard market plan to confirm that, based on their monthly minute usage history, to identify clearly which one will save them the most money.
Share your thoughts and questions.
Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.
Tags: cell phone plans with debt, cell phone strategy with debt, cell phones for the unemployed, cell phones with debt, cheapest cell phone plans
