10 Tips: Dial up some help with your phone bill

By Laura T. Coffey
A few years ago, the options for reducing your local and long-distance phone bills were nothing like they are today. These tips can help you determine the best way to lower your phone costs, depending on your circumstances and needs.

1 Reflect on your calling patterns. Do you make lots of long-distance calls? How many special services - caller ID, call waiting and three-way calling - have you come to rely on? Study one or two recent phone bills.

2 Make your calls via the Internet. If you have a high-speed Internet connection, you stand to save up to $400 a year by using Voice over Internet Protocol, or VoIP, to make the bulk of your calls. For about $20 to $25 a month, you can score unlimited calling through Vonage (www.vonage.com, Packet8 (www.packet8.net) and phone and cable companies that offer VoIP services. Another over-the-Internet provider, Skype (www.skype.com), offers ultra-low-cost services.

3 Go wireless. Cut your landline and use your cell phone for all calls. Make sure that your cell plan gives enough national, any-time minutes and that you get good reception at home.

4 Prepare for emergencies. Make sure 911 operators know how to find you if you opt for the all-Internet or all-wireless approaches. If you're making calls over the Internet, give your phone service provider your address.

5 Pay a flat fee for unlimited calls. You can keep your landline and opt for unlimited, bundled long-distance and local service from a single provider. Expect to pay $35 to $55 plus taxes each month for this service.

6 Consider a phone card. If you don't make very many long-distance calls on your landline, a prepaid long-distance card can help you save. You'll have to punch in a whole bunch of numbers, but it can be worth it if you find a card that gets you 3.5 cents to 4 cents a minute for U.S. calls.

7 Do some quick comparison shopping online. Check www.ABTolls.com and ComparePhoneRates.com to compare prices for a variety of long-distance plans, cellular plans and phone cards.

8 If you have a low or fixed income, get help. Tap into programs that make it easier to afford a telephone hook-up and the price of basic phone service. The Link-Up Florida program provides a 50 percent rebate (up to $30) toward installation. The Lifeline Assistance program offers a credit of $13.50 a month for local phone bills.

9 Determine your eligibility. You're eligible for these programs if you get state or federal help from: Temporary Cash Assistance; food stamps; Medicaid; Low-Income Home Energy Assistance Program (LIHEAP); Supplemental Security Income (SSI); Federal Public Housing Assistance (Section 8); or the free lunch program. You're eligible if your annual household income is less than $13,784 for one person, $18,482 for two people, $23,180 for three people or $27,878 for four people.
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