Learn Why More Is Less With Verizon’s No Contract Plan

There has been a lot of speculation and debate over Verizon’s new no contract plans, which roll out this Thursday, August 13.

With all the new packages and the elimination of smartphone subsidies it can be quite confusing to choose a plan that not only works for you, but will help you save money.

Luckily, we have looked into how it all works and have some money saving tips to help you get the most value for your dollar.

For those who don’t know, Verizon is eliminating contract plans starting this Thursday and will now offer 4 no contract plan options.

All plans cost $20 a month for unlimited talk and text, with 4 different data plan options: small (1 GB of data per month) for $30, medium (3 GB) for $45, large (6 GB) for $60 and extra-large (12 GB) for $80.

The big issue is the elimination of subsidies on the newest smartphones- so an iPhone 6 will now cost you full price.

You can pay for the phone in payments over 2-years, but you will pay the full $649 retail price.

So, how do you save?

Here are a few tips:

· Upgrade NOW

If you are a current Verizon customer and have a 2-year plan you have the option of keeping your plan or switching over.

However, Verizon isn’t saying if you can still upgrade at a discount past Thursday, so if you are eligible for an upgrade do it by Wednesday to be safe.

Same goes if you plan to switch over- get the upgrade before switching (and pay it in full) or you may have to pay full price.

· Get A Less Expensive Phone

Sounds easy enough, but many people feel they need the newest model, when they actually don’t.

There are phones that cost way less than the new iPhone or Samsung that work just as well and offer the same features.

· More is Less

Ever heard the saying “less is more”?

Apparently Verizon has and has taken the phrase quite literally when it comes to their new, no contract offerings.

Under their new pricing structure you will actually save more with a higher data plan.

So more, as in data, will cost you less- here’s how:

If you have a Samsung Galaxy S4 under a 2-year contract that is about to expire you’re paying Verizon $140 a month with 12 GB of data, whether or not you upgrade to a new phone.

However, with Verizon’s new 12 GB plan you would pay just $100 a month if you keep your phone, saving you $40 each month.

Conversely, the same phone, with 1 GB of data will save you $20 a month.

You’re still saving, but it’s less with the smaller plan.

·Buy What You Need

Many think they will save by buying the smaller package, but it can end up costing you a lot more.

If you go over your data plan Verizon will charge you $15 per gigabyte you go over- that can add up really quick.

· If You Buy A New Phone, Choose Wisely:

If you want the newest phone you can still save if you opt for the payment plan, but get a larger data package.

With Verizon’s new plans there is no $200 down payment required  and no $40 activation fee.

So with a larger data plan you can save both short and long term.

Smaller data plans will save only long term.

Let’s take a look:

“If you get a new, 16 GB iPhone 6S and use 1 GB of data you’ll be billed $77 a month over 2-years. ( It would be $70 under the old plan.)

Minus the activation fee and down payment, the 1 GB plan ends up saving you $72 over the next 2-years($1848 vs. $1920), saving you about $3 a month.

Jump up to the 12 GB plan and so do your savings:  you save $13 a month on your bill, which is $550 ($3050 vs. $3600) over 2-years and $23 a month.

Of course, these savings only apply if you need 12 GB of data, otherwise you will end up paying more for something you’re not using.

As you can see, there are several ways to save if you choose one of Verizon’s no contract plans.

While they have eliminated low-cost smartphones, they have compensated with some reasonably priced plans that may be worth it in the long run.

What do you think of Verizon’s new no contract plans?

Share your opinion with us below and be sure to  follow all my latest consumer news reports on Twitter.

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