Monthly Archives: January 2010

How To Avoid Paying $900/Month For Your iPhone

My sister-in-law owns an iPhone, but when she went away on a business trip a few months ago, took a cheap international cell phone her mom had and left the iPhone at home for the week and a half she was away. My brother, Not thinking that his actions would have any consequences, took his sim card and put it in his wife’s iPhone and suddenly he had thousands of apps at his fingertips.

He was probably pretty amused by it for that week and a half, but what he didn’t realize is that if you’re going to use unlimited cell phone service, you should probably sign up for the unlimited data plan. For those 10 days he was happy as a clam, but every time he checked his email or downloaded an app, it was costing us money. And it wasn’t just a few cents here or there, it was over $900 for the 10 days he had the phone.

When the cell phone bill came out, I saw a $600 overage and realized something was wrong. I scanned the bill and found that one number used a ridiculous amount of data. I called my brother make sure it was a mistake (surely he didn’t actually use that much data), and when I told him that our account was messed up and it said he had an iPhone, he paused for a second and said, “O crap.” He really did it. I’ve had my share of negotiations with AT&T, so I told him not to worry, that it wouldn’t be a big deal, and that I would take care of it. But first I called him a few names and made fun of him quite a bit.

I called up AT&T to explain what happened and get the charges reduced, and got a customer service representative who listened to my problem and agreed to try and resolve the situation. The conversation went something like this:

Customer Service Representative: Hi, my name is Tracy, how can I help you today?

Me: Hi, I just got my bill and saw that there are some ridiculous overages for this month, so I wanted to try and get that reduced.

Tracy: I’ll be happy to help you. It looks like the 0480 number has a lot of data usage this month.

Me: Yah, my brother put his sim card in an iPhone and didn’t realize that he should have signed up for a data plan first. Is there a way to remove the charges?

Tracy: Well, unfortunately it looks like the charges are valid because he didn’t sign up for a plan before the billing cycle began, so there’s not much I can do. If he had called up in advance to get a data plan before doing so, it would have only been the $30 cost of unlimited data for the month.

Me: Yah, I know that the charges are technically valid, but if you looked what happened, it was obviously a mistake. He doesn’t have an iPhone usually and it was a temporary mistake. We’ve been loyal customers for 10 years and we’ve liked our service a lot, so I’d hate for this to give us a bad impression of AT&T. Is there anything you can do? I’d like as a courtesy to have the bill changed. Can you apply the $30 a month data package retroactively?

Tracy: Well, we do appreciate your business, so as a one-time courtesy, this is what I can do: While I can’t remove all the charges, I can retroactively apply a $30 data plan to that line so you’ll be charged only the $30 and not $600.

Me: Wow, that would be great. You just saved us $570!

Tracy: It’s not a problem. Actually, I can apply the data plan from the date he started using data, which was 7 days before the end of the billing cycle, so the charges will be prorated. So for those 7 days, it comes out to $7.32.

Me: Thanks, I really appreciate it. Since we just realized what was happening, can you do the same thing for this month as well? He’s been using it for the past few days, while the bill was coming out, but after the billing cycle started, so I’m sure he’s racked up some more charges.

Tracy: I’m unable to remove charges from a bill that hasn’t come out yet, but what I can do is keep the data plan on for this month. When your next bill comes out, you will see the charges on the account, so you’ll have to call back next month and a customer service representative will see my notes and make the adjustment for you.

Me: That’s not a problem. Thanks so much, I really appreciate you helping me out!

I called my brother and told him that I got the bill reduced to $300 and that he should send me a check because I already paid the bill. Just kidding. He was pretty relieved that he didn’t cause our family such a large, unnecessary charge. He felt bad about using the data, so he took out the sim card and put it back in his regular flip phone.

I called up AT&T again to have the data package removed since he stopped using the iPhone, and the prorated charges for the month totaling just $3. Then, when the next bill came out with $300 in data charges, I called up again, told them to reference the notes, and they were able to credit our account. So instead of paying over $900 for 10 days worth of data, we paid only $10.

While I like to think that I have special powers and just plain good at negotiating, the truth is that I’m nothing special. Customer service representatives are there to help you. They may not always jump at the opportunity to reduce your bill, but ultimately they are willing to help if you ask the right questions. If you think you’re paying too much for your phone, cable, or internet, call up and ask if they have any promotions that could save you money. You definitely won’t save money by sitting on the sidelines.

Best of the Rest: Guest Post Edition

This was a huge week for me because I guest posted on four blogs! It was sort of a coincidence that it was all in one week, but it was a really great experience for me, and hopefully you’ve had a chance to read the posts. Thanks to all four of the bloggers who gave me the opportunity, it was a lot of fun! Here they are:

Who cares if you saved money by spending money?!
at Budgets are Sexy – It’s not saving if you don’t put it in the bank! Check out the comments, his readers are GREAT! (also the two links in there may compete in Free Money Finance’s March Money Madness Competition. What a crazy coincidence!)

The Pinnacle of Frugality
at You Have More Than You Think – My experience buying triscuits and how rain checks can save you a ton of money.

Simple Negotiation Boosts Your Mood And Your Wallet
at PT Money- 3 ways I negotiated to save me money and get free stuff

Why I Don’t Stress About My $23,000 Pile Of Debt
at Money Relationship – Sure, I’m in debt, but here’s why I’m able to deal with it.

Here are the must reads from this week:

Financial Samurai explains Why Converting To A ROTH Is A Mistake. He makes some excellent points and you should go read it right now if you’re considering doing it. (Also, I’m ranked in the top 5 in the Samurai Fund this week! Check it out, how do you think we’ll do??)

Fiscal Geek asks: Should you Invest or Save for Retirement While in Debt? It’s an interesting question and he provides a way to earn a guaranteed 19% return on your investment.

Bucksome Boomer shows through her experiences that Smaller Isn’t Always Cheaper. This may help you rethink your next shopping trip.

Five Cent Nickel explain How We Paid Off Our Mortgage in 10 Years. WOW. Congratulations! His explanation is very cool and while difficult, apparently it can be done!

Miranda Marquit guests posts at MoneyNing and says that you should Stop Using Your Tax Refund as a Saving Account. For some people it may make sense, but if you’re responsible with your money and keep to your budget, don’t give a free loan to the government!

Finally, here are the posts I was mentioned in this week. Thanks guys!

Mighty Bargain Hunter

The Millionaire Nurse

FSA to the Rescue!

As you know, I chipped my tooth on Tuesday, but unlike last time, I was prepared. I put $400 in my FSA about two weeks before I chipped my tooth the first time, thinking that it would last until 2010. I was wrong, but chipping it again on Tuesday gave me a reason to use some of my FSA. I purposely set money aside to fix this exact problem, so the funds would serve their purpose.

Of course, since I had planned and was prepared to take care of the bill, the very nice dentist told me that since I broke it so quickly after she fixed it, I wouldn’t be charged. Awesome! But now I have a lot of extra money in my FSA that I wasn’t expecting. It’s not really a problem because I can always buy extra contact lenses, nicer glasses, and stock up on over the counter medicine, but I was excited to be able to use my FSA, and she ruined it! Still, I really like knowing that should something else happen to me in the next year, I won’t have to pay out of pocket.

Also, one nice thing is that my FSA allows me to use my funds up until March 31st of 2011. Which means that I’d be able to pay for a January 2011 dental appointment with my 2010 funds. It also means that I don’t have to worry about finding ways to use my funds for quite awhile. Three dental appointments, various over the counter medicines, cough drops, and a first aid kit should cover most of those funds. And if something does happen, I’ll be prepared.

It’s very hard to judge how much money should go into an FSA. If you put too little in, you’ll have to pay for some expenses out of pocket. If you overestimate how much you’ll spend, you end up throwing away money that could have gone towards your paycheck. I thought I did a good job, and then I had my tooth fixed before I needed it. Then I broke it and was on track again. Then the dentist did me a favor and I may have some money left over. Oh, well, I guess this is a very good problem to have.

My Bank Experiences

Right now I have three banks, each of which serves a different purpose. I have one bank I love, one I hate but use anyway because it’s convenient, and one that gives a “high” (2.01%) rate of interest but I just opened recently and am not sure how I feel about it yet.

I get my direct deposits to my ING Direct Orange Checking account and everything else flows through there. I pay my student loans from my ING account and my automatic investing also originates with ING. ING is great. It is easy to use and I’ve only had positive experiences with them. How can’t you love a company that when you call, they answer, “How can I help you save your money?”

I transfer rent money to my Bank of America checking account each month, only doing so because my roommates send me their rent and I send one payment to the landlord. I also use Bank of America for ATM withdrawals because the have many more convenient locations in my area than ING. I’ve had my share of problems with Bank of America, but the convenience is what keeps me there. If I lived with a roommate that used ING, maybe I’d leave Bank of America alltogether.

I have used ING for my savings accounts (which are also great, easy to use, and allow me to create sub-savings accounts. However, I recently set up an account at SmartyPig, which is an online bank that right now gives 2.01%. It’s an interesting site, which is all about automatically saving for goals and gives bonuses if you withdraw your money in the form of a gift card (only use this feature if you’re planning on buying something from one of the merchants!). However, taking money out is a hassle. It took me a few days to find out how (not that I wanted to withdraw, but I wanted to know how to do it.) So far, I’ve had no problems with SmartyPig and I actually like it. We’ll see if the interest rate remains high, but for now, I’m keeping it. If I ever decide to go back to ING, that’s always an option.

How many bank accounts do you have and which are your favorites?