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Shopping for cell phone service? Here are some tips:

  • If you're new to a wireless company, do not enter into more than a one-year contract.
  • Consider a pre-paid plan, especially if you use your cell phone very little. People who use their phones very little often end up buying too many monthly minutes with regular plans.
  • Use your phone as much as you can during the grace period, when you can still back out of your contract without paying a hefty penalty. If you don't get good reception at your place of work or home, or anywhere else that you visit often, go with another carrier.
  • Make sure you know what features and services you need. Younger users, in their teens and 20s, tend to use text messages, cameras and music players on phones. Users in their 40s, 50s and 60s tend to use phones to make voice calls. Travelers may want a national plan, while those who don't travel much may prefer a pre-paid plan.
  • Consider whether you'll be using your phone for long-distance. Ask whether the plan includes long-distance calls or whether you'll be charged an additional fee.
  • Read the entire contract. It's better to spend the time reading the contract before you sign on the dotted line, than to find out later that there are terms you don't like.

Sources: Michael Shames, executive director of the Utility Consumers' Action Network, and Morgan Jindrich, director of Hearusnow.org, a Web site run by the Consumers Union.

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