Shopping Savings: Picking the Right Phone Plan

 

This year, 29% of Americans plan to buy the new iPhone, according to the personal-finance website WalletHub’s new 2021 iPhone Survey. However, WalletHub found that people can save $933 - $1,935 over two years by picking the right plan.

You can find some highlights from the report below, along with a Q&A with WalletHub analyst Jill Gonzalez. You can also crunch the numbers to see which iPhone plan is right for you, using WalletHub’s custom Cell Phone Savings Calculator, ahead of the newest models starting to ship on Friday.

• A no-contract individual plan from Visible is the best way to get the new iPhone, beating plans from all three major carriers.
   
• For even more savings, keep your old phone. Individuals can save up to $1,720 and families can save up to $2,723.
   
• About 24% of Americans plan on spending more on their cell phone due to COVID-19.
   
• Nearly 1 in 5 people think that the new iPhone is worth going into debt for.  

 
WalletHub’s Cell Phone Savings Calculator lets users input their upfront and monthly costs to compare the true cost of two-year contracts, installment plans and no-contract plans from all of the major carriers. You can check out the calculator, along with an infographic comparing the most popular plans, here: https://wallethub.com/cell-phone-calculator/

Do you have any advice for saving on a smart phone, considering the fact that only 24% of Americans plan to spend more on their cell phone this year?
“The best way to save money on a cell phone is to purchase a phone that’s at least one generation old instead of the newest model. Upgrading your phone every year used to be more important when the changes between models were significant, but now the differences are much smaller, so getting an older phone is worthwhile,” said WalletHub analyst Jill Gonzalez. “Buying a phone that’s a generation behind can cut your price in half while giving you almost as good of a user experience as the latest version. Other ways to save money include buying used, good-condition phones or looking for carrier discounts.”

What advice do you have for reducing the cost of wireless coverage, especially during the COVID-19 pandemic?
“There are plenty of different ways for consumers to reduce the cost of wireless coverage during the COVID-19 pandemic, and the best ways to do so are comparing many offers and waiting for big promotional deals before buying. One of the biggest money-saving tips is to get coverage from a ‘budget’ phone provider that shares a network with a name-brand company. You’ll receive pretty much the same coverage for a much lower price,” said WalletHub analyst Jill Gonzalez. “Setting up automatic payments on your monthly bills, as well as bundling your coverage with friends or family, can help you get discounts, too. If you’re in financial trouble and are having difficulty paying your bills, you may also be able to get some relief from your provider if you call and ask.”

Why do around 2 in 5 consumers think that their phone is their most important possession?
“The reason that around 2 in 5 consumers think their phone is their most valuable possession is that few other devices are as versatile and portable. Cell phones are essential for social life, like keeping people connected during the pandemic, and for business use, especially as remote work has become more and more common,” said Jill Gonzalez, WalletHub analyst. “Cell phones provide internet access even when there’s no Wi-Fi to connect to, and are sometimes the only way families can get online. During the COVID-19 pandemic, cell phones have been especially helpful by giving people access to contact-tracing programs and the ability to schedule vaccination appointments.”