Bill Payment

There are several strategies you can use, to ensure that you pay your phone bills on time. You can opt to set up an automatic bill payment arrangement, for the phone bills. Or you can opt to create reminders for yourself, with regard to the bill payments. You can go a step further, and ensure that you budget for the phone bills well in advance. We will now proceed to look at what each of those strategies entails:

Setting up automatic bill payment arrangements

So this is where you instruct your bank to be making the bill payments, on your behalf, using the money in your account, after a certain interval (without fail). This system can work very well if, for instance, you have subscribed for a phone plan where you pay a fixed amount of money monthly. Then you would be assured that every month, on a certain date, your phone bills would be automatically paid – as long as you have enough money in your account. And if, at some point, you don’t have enough money in your account to pay the bill on the stated date, the bank can send you alerts to that effect (well in advance). Then you can proceed to replenish your account, to ensure that there is enough money to pay the bills on the due date. Or you can make other arrangements for the phone bill payments: whatever it takes to ensure that the bill payment isn’t delayed.

There is also the arrangement where you can give your phone carrier your credit card/debit card number. The idea would be to bill that credit card/debit card on monthly cycles. So when payment date for the phone bills comes, funds would be deducted from the credit card/debit card automatically – and used to pay the phone bills. And this means that you would have peace of mind in knowing that your phone bills are automatically catered for, as long as you have some funds in the debit card/credit card used for the purpose.

Creating reminders for the phone bills

So this is where you start by figuring out what the best date for you to be paying the phone bills is. Then you create reminders for yourself (on your calendar, or using a ‘post it’), to the effect that on such and such a date, you would need to make phone bill payments. Nowadays, we have all sorts of personal scheduling apps for mobile devices that you can use for this purpose. The most important thing here is to have something to remind you as the date when you are supposed to make the phone bill payments approaches. That is better than having a system that only reminds you that you need to make the phone bill payments on the very date when the bills are due! Remember, to pay the phone bills, you will need to have both time and money. So you need to have something to remind you that you need to pay your phone bill on such and such a date (well in advance). This would then give you the opportunity to set aside time for the task, and to organize your finances in order to be able to honor the payment… With these sorts of reminders, it is very unlikely that you would end up delaying in making the phone bill payments.

Of course, if you opt to use this strategy, you need to get yourself to respect the ‘reminders’ unfailingly. There are people who have systems to remind them that on such and such dates, they are supposed to perform such and such tasks. Yet, even when they are reminded, they fail to honor the reminders – making the whole system pointless. So the key thing here is to avoid procrastination. If your ‘reminders’ tell you that you are supposed to pay your phone bill on such and such a date, you need to go ahead and actually make the payment. Even if it is the not the last possible date to pay the phone bills, you still need to make the payment. Otherwise you will keep procrastinating, and you will soon find yourself facing a deadline: in terms of the last possible date on which you can pay the phone bill. Then if you procrastinate further, you will already be deemed to have delayed your payment. That would possibly lead to a situation where your phone line would be disconnected. And the phone service provider may even report you to a credit bureau, thus messing up your credit score.

Budgeting for the phone bills well in advance

There is one key reason as to why people fail to pay their phone bills on time. It is usually not that they are unable to remember to make the payments. Neither is it usually due to lack of time to make the payments (after all, these payments take very little time nowadays). Rather, in most cases, you tend to find that the reason as to why people are unable to make their phone bill payments on time is due to lack of money. So you find that the date when you are supposed to make the phone bill payments arrives, and you suddenly realize that you don’t have the money to make the payment! The way to avoid finding yourself in this situation is by budgeting for the phone bills well in advance. This way, you’d always be having the money to pay the phone bills, when they fall due.

It is a good idea to allocate the money for the phone bill payments from the previous months’ earnings. Thus, for instance, you can have July phone bill payments budgeted for from June earnings. This way, even if there is a delay in processing your paycheck, you would still be able to make the phone bill payment on time.

This idea of budgeting for phone bill payments well in advance is not hard to implement – keeping in mind the fact that personal phone bills tend to be rather modest. There is usually no reason as to why you can’t set aside a few bucks (sometimes as little as $30 or $50) from this month’s paycheck, to cater for next month’s phone bill. With that sort of arrangement, you will be well assured that a situation would never arise where you would be unable to find money to pay the phone bill.

Like many other people, you may have gotten to a point where you feel that you are spending too much on your phone bills. This would lead into a situation where you start entertaining the question as to whether it is possible to lower your phone bills. That would in turn lead to another question, as to how exactly you can go about lowering your phone bills (if at all it is possible to lower them). Those are the questions we will be attempting to answer in this article.

With respect to the first question (on whether it is possible to lower your phone bills), the answer is ‘yes’. It is possible to lower your phone bills. There are people who were previously spending huge sums of money on phone bills, but they have subsequently managed to lower the phone bills by huge margins. So this is where, for instance, you find an individual who was spending, say, $100 per month on phone bills, and who has subsequently managed to lower it to $50 per month. So it is definitely something that can be done.

With respect to the second question (on how phone bills can be lowered), the answer is in that there are two simple things you can do, to reduce the amount of money you spend on phone bills. You can start by opting for a phone service provider and phone plan that is well aligned to your needs. Then you can make a conscious choice to be utilizing your data prudently. That way, you may be able to cut the amount of money you spend on phone bills by huge margins. We will now proceed to look at those strategies (through which you can lower your phone bills) in greater detail.

Making the right choice of a phone service provider and phone plan

So the first step here is to list the phone service providers/carriers in your area: these being the service providers/carriers you can potentially sign up with. The next step would be to find out what phone plans each of the service providers/carriers has to offer. What is the cost of each phone plan, and what is included in each phone plan? Remember, it is possible to find two service providers/carriers, who are offering similar phone plans (with similar features), yet charging vastly different sums of money for the plans. In your search, it would be a good idea to also include the Mobile Virtual Network Operators (MVNOs), as these tend to offer very good rates.

The next step would be to look at your phone usage habits. What do you use your phone mostly for? Is it mostly for making calls? Or are you a smart-phone user, who mostly uses data – as opposed to someone who mostly uses the phone for making calls? How much data do you use per month? So you need to have a good profile of yourself as a phone user.

What you need to do next is to check through the phone plans you collected in the first step, and choose the one that is best aligned to your needs. Like if, for instance, you are a heavy user of data, you can opt for a plan that gives you ‘unlimited’ data. If on the other hand, you are a person who mostly uses your phone for making calls (while using very little data), you can opt for a plan that offers ‘unlimited’ calls.

The idea is to avoid signing up for a phone plan where you end up paying for things you don’t need. Like if you are a person who mainly uses your phone for making calls, yet you sign up for a ‘unlimited’ data plan – you will end up paying more for the ‘unlimited’ data, yet that is something you won’t actually be using.

If you are paying more in terms of phone bills than you (feel you) should be paying, then it is likely that you are paying for things you don’t need. So you need to identify the things that you don’t need that you are paying for, and opt out of the phone plan that includes such.

It is also at this point where the question of paying your phone price installments as part of your phone bills comes in. Many of the people who pay hefty phone bills find that their phone bills have two components. One component is for using the phone services, and the other component is for payment of the phone installments. The way to avoid paying such installments is by opting for a ‘no-contract’ phone plan. So you would buy your phone upfront, and then on a monthly basis, you would only be paying for the phone usage services. This would also give you an opportunity to buy a phone that is ‘unlocked’ – that is, a phone with which you can switch service providers/carriers.

Utilizing your data prudently

Nowadays, most phone plans come with a ‘data’ component. So in the phone bill, you pay for the calls you make, the texts you send, and the data you use. And for many of the people who pay more than they should be paying, the problem turns out to be due to the ‘data’ component. You see, many of the phone plans out there come with data caps/limits. Once you go past the data caps/limits, you are charged very high rates for data usage thereafter. You could find that what you end up paying, at the end of the month, is twice or even thrice what you’d have paid, if you hadn’t exceeded the data cap.

If you are using a phone plan that comes with such a data cap, you need to put in every effort to ensure that you don’t go past the data cap/limit. This may be a question of using Wi-Fi whenever and wherever you can (keeping data security concerns in mind as well). It may also be a question of turning off background data usage in various apps. So you need to do whatever it takes to ensure that you don’t go past the data cap/limit. But if your needs are such that you keep going past the data cap/limit, then the best solution for you may be where you switch to a plan that allows you ‘unlimited’ data. A plan with unlimited data is obviously likely to cost more. But the extra amount  you pay is still likely to be lower than what you’d otherwise have to keep on spending paying ‘penalties’ for going past the data limit/data cap.

One challenge that phone companies struggle with is that of getting their customers to pay their bills on time. It is a difficult challenge, especially given the fact that naturally, people don’t like parting with their money. Thus whereas people are quick to use the phone services, they tend to become slow when it comes to phone bill payments. Yet experience shows the people who run the phone companies that pushing the customers too hard (to pay their bills on time) can be counterproductive. That is because customers have the option of switching to other carriers, if they feel that they are being pushed too hard to pay their bills on time. And if a phone carrier loses customers in this way, it can be very hard to replace them. And it can be a rather huge loss, considering the ‘lifetime value’ of the lost customer. Yet on the other hand, the phone service provider wouldn’t have a sustainable business if the customers don’t pay their bills. And as we have seen, some of the customers won’t pay their bills unless they are pushed… So it becomes a delicate balancing act: aimed at pushing the customers just enough to pay their bills, without pushing them to the extent of considering switching to other carriers.

Thankfully, there are some ‘tried and proven’ strategies that phone carriers can use, to increase the chances of their customers paying their bills on time. In that regard, to ensure that phone services users pay their bills on time, a carrier needs to:

Give incentives for early payment of the bills

This is where, for instance, the customers who pay their bills on time can be given discounts (specifically on account of having paid the bills in a timely manner). This would mean that the customers would have something to gain, for paying their bills on time. And conversely, it would mean that the customers would have something to lose, if they don’t pay their bills on time. So this would push them, at a subconscious level at least, to pay their bills early…

You have to understand that human beings can be selfish, and you therefore have to show them that something is in their self-interest, in order to get them to do it. So in this case, you have to show the phone users that it is in their best interest to pay their bills early, in order to get them to do it. The discounts to be offered for early payment of bills need not be particularly huge. The idea is simply to have something that can push the clients, at a subconscious level, to pay their phone bills on time. The discounts may look modest, at a conscious level, but remember, you are targeting the customers’ subconscious minds.

Encourage the phone service users to sign up for automatic bill pay

If the phone service users sign up for automatic bill pay, issues of late payment of bills wouldn’t arise. That is because money would be automatically deducted from the customers’ bank accounts, to pay for the phone bills on the dates when the bills are supposed to be paid. So the challenge you have to deal with is on how to get the customers to sign up for automatic bill pay. One way to do so would be by giving a discount to customers who opt for automatic bill pay. So you can have a system where customers who sign up for automatic bill pay are charged, say $5 (or just $3) less than what they would otherwise have had to pay. So the customer would get to know that by signing up for automatic bill pay, he would end up paying $60 (or $36) less, per year, than they would otherwise have paid. This would push them, subconsciously at least, to sign up for automatic bill pay. And on your part, it would help you to avoid late bill payment issues. It may also help you retain the customers – because customers who are signed up for automatic bill payment are less likely to ditch you than customers who haven’t (unless your services deteriorate to totally unacceptable levels).

Make the customers aware of the consequences of late payment of phone bills

So this is where you need to make it clear that customers who fail to pay their phone bills on time are at a risk of eventually being disconnected. And that they are also at risk of being reported to the credit bureaus. Don’t make it sound like a threat, but state it in a factual manner – and it will serve to push the phone users to pay their bills in a timely manner.

Send alerts to customers whose phone bill payment dates are near

Sometimes, people just forget that they are supposed to pay their phone bills on certain dates. Remembers, these are individuals with lots of other things to keep track of, besides phone bill payments. So you may find individuals who are more than willing to pay the phone bill payments (and who actually have the funds to do so) – yet they just forget to do so. To help these sorts of customers, the best thing to do would be to send them alerts, reminding them that their phone bill payments are due on such and such dates, and encouraging them to actually make the payments.

Ensure that the bill payment systems are easy to use

If the bill payments are not easy to use, it will serve as a disincentive for the customers to make the payments. People will think of the difficulty they are likely to encounter paying the bills, and shirk from the task (even if they have the money and will to pay the phone bills). So the way to avoid this is by seeing to it that the phone bill payment systems are easy to use. Therefore the customers will know that they just have to spare a few minutes, and get the phone bill payments done. This would ultimately increase the probability of the customers paying their phone bills on time.