Starting this week, card issuers need to give consumers 21 days advance notice for bill payments due, instead of the current 14-day notification period, writes personal finance guru, Terry Savage. This change will mean fewer people will get hit with late fees.

Also set to go into effect on Thursday, card companies will be required to give you 45 days advance notice on rate increases, instead of the 15 day advance notice. The final pieces of the bill will take effect February.

The changes come as American Express customers received unwelcomed news Friday. According to the folks at Consumerist, American Express Blue is raising rates on all customers. The rate change will take effect Oct. 1.
Consumerist rounded up the changes and new interest rates for card holders (Note, this is just one example, and the increases vary among customers.):

–Standard APR is going from fixed rate 11.99% to prime rate plus 11.99%. The rate as of Aug 1 is 15.24% (this is applies to new purchases and all previous balances).
–APR for cash advances will be 21.99% plus prime.
–APR for late payments will be 23.99% plus prime.
–Late fees for less than $250 will be $19 and $39 for $251 and higher.

In other credit card news, American Express and Discover announced last week that they’re nixing over-the-limit fees.

What’s your recourse? Well, you can pay down or get rid of your debt. I know, simply stated yet more difficult to actually do. But as Savage says, credit card holders are at the mercy of card companies as long as they carry a balance.

If you think your interest rate has been unfairly raised, you can file a complaint with the Federal Trade  Commission for further investigation. You can also call Help With My  Credit at 1-866-941-1030 and speak to an operator who will provide information about contacting credit card issuers and accredited credit counseling agencies. The organization was started by card issuers and financial institutions to educate and assist struggling card holders.

For more on credit cards, check out:

Credit Card Fee Hustle
House Passes the Credit Card Bill of Rights
Bankrate.com Credit Card Calculator
Credit Card Predatory Practice Prevention Checklist

Renita Burns is the editorial assistant at BlackEnterprise.com.

It may be mom or dad, according to a study released by ING Direct Monday. The financial institution found that in these tough economic times 18% of parents who have been setting cash aside for their children have tapped into that money to pay off bills and debt. And 34% of parents who have been stashing money away for their kids have reduced contributions to their children’s savings.

“It almost violates a trust that this money was set aside for your child’s future and now you’re taking it,” says Chris Long, president and financial adviser at Long and Associates.

Barring any issue beyond your control — e.g., medical bills, unemployment, or imminent foreclosure — there’s no reason to dip into your child’s savings, Long adds.

Even more startling, the report reveals that 39% of parents surveyed are more prepared to talk to their children about drugs and alcohol than money, and 27% are more prepared to talk to them about sex. Wowzers!

While all are important conversations, not teaching your kids about money can set them on the path to financial ruin before they get started. “Parents need to set an example by setting up an automatic savings plan,” said Arkadi Kuhlmann, president of ING Direct USA. “A ‘set it and forget it’ savings mentality makes it easy for parents to save, while teaching their children about the importance of putting some money aside for future needs.”

Before you resort to pilfering from your little ones or avoiding the money talk, take a look at a few tips on how you can stretch dollars while also teaching the young ones its value.

Tips for Parents
Keep track of your spending. One way to save money is to first get a sense of where it’s going. Long recommends using MINT, a free online program that automatically tracks your spending. All you do is link your accounts to the program and categorize your spending. Unlike other online programs, MINT tracks your spending automatically.

Dip into your own funds first. Before reaching into your children’s pockets make sure you’ve exhausted your all your resources. Worse case scenario, Long suggests tapping into your 401k before tapping into your child’s 529 Plan, since you’ll end up paying tax and a 10% penalty. He shares this advice with parents: “Don’t save for your kids’ education until you are saving for emergencies and retirement.”

View it online. With most shows and movies available online, the need for a 600-channel premium cable package is highly diminished. Consider downgrading and utilizing such Websites as Hulu.com, Alluc.org, and Ovguide.com to watch your favorite flicks. The CW, Bravo and MTV are also starting to run shows online. Just use a video cable to hook up your computer to your TV and there you have the same great viewing pleasure.

Teaching Kids the Basics
Turn it into a game. Most kids are up for anything that’s exciting, so make learning fun. Instead of regurgitating the same information about saving and spending, turn money management into a game. Try creating a coupon challenge. Whichever child clips the most usable coupons will win an ice cream cone or gets to choose events for the next family fun day – you decide the prize.

Make them earn it. Giving your children a weekly allowance attached to household duties is a great way to teach them about money. Attach a dollar value to chores — sweeping for $3, washing the car for $10, etc. – to help them understand the value of labor – and a dollar.

Encourage them to find additional sources of revenue. When I was in seventh grade my mom (a junior high school social studies teacher) pushed me and two friends to sell ice cream at a local summer camp. She helped us find a cheap wholesaler and we put our money together for the initial investment, which wasn’t much. Encourage your kids to be enterprising, start with lawn care or helping neighbors clean their houses.

Renita Burns is the editorial assistant at BlackEnterprise.com.

Jet Blue is offering a "Just in Case" deal for those who become unemployed. (Source: Jetblue.com)

Yesterday, I blogged on recession-friendly deals companies are offering. But there’s more to the wave of “recession specials” that have many companies loosening their grips. With unemployment reaching historic highs, 8.1% in February, a number of companies responded to the uncertain times with “Just in Case” offers.

What do these offers entail? It’s like insurance in case you lose your job, but in this instance, there are no additional payments. (Whooohooo!)

Flying the Fare-Friendly Skies

If you were planning on taking to the skies, say for a family reunion or even a mini-vacation, the always fare-friendly JetBlue Airways offers a refund guarantee if you lose your job prior to your trip. “We provided this because our customers asked if it would be possible to book stress-free travel plans,” says Alison Croyle, JetBlue spokesperson. “The refund plan allows people to book with the confidence of knowing they’ll be able to get the money back if they experience an involuntary job loss.”

The program started Feb. 17 and covers any flights booked between Feb. 1 and June 1.

Here’s how the refunds work: JetBlue must be notified of any job loss at least 14 days prior to the flight. Customers can visit Jet Blue’s Promise program Website for the necessary documents they’ll need to mail and fax to the company.

On Tuesday, JetBlue announced it will expand the offer to the Getaway program, allowing refunds on entire travel packages instead of only airfare.

Car Payment Relief

Auto maker Hyundai is hoping to get you into the showroom with its Hyundai Assurance Plus program. It will make three payments on vehicles purchased between Feb. 23 and March 30, in the case of any “life altering circumstances,” including involuntary unemployment, physical disability, and self-employed personal bankruptcy.  The Plus program is an extension of the company’s initial Assurance program which allowed customers who purchased or leased a vehicle to return the car, given a job loss. If you cannot make payments after those three months, you can bring the car back with no risk. Here’s the catch: You have to have already made two consecutive payments and be current on your account.

Tuition Deals

Calling all St. John’s University alumni! The New York school is offering half off the cost of graduate school tuition – a $15,000 to $25,000 savings – to any alumni who lost their job in the last six months, reports NY1 News. The Alumni Assistance Program also gives students access to the school’s career center where they can obtain professional advice.

Aiding Homeowners

As foreclosure rates skyrocket, I’m particularly fond if this offer. Citigroup launched its Homeowner Unemployment Assist program last month to help borrowers who may be at risk of foreclosure. The bailed-out banking giant will lower mortgage payments to an average of $500 a month for three months, for borrowers who’ve lost their jobs within the last six months and are at least 60 days behind on mortgage payments. Citigroup will also waive interest and penalties during the period.

To qualify for the program, borrowers must live in the home and have a mortgage that is owned and serviced by CitiMortgage. The program applies only to loans of $417,500 or lower. Borrowers must also provide proof of unemployment and sign a form promising that they will look for a job and let Citigroup know if they’ve found one.

Found any “Just in Case” specials? Chime in on which deal you think is the best.

Further Reading

The Cutting Edge: Recession Specials

Renita Burns is the editorial assistant at BlackEnterprise.com.

“Jessica’s Money Blog” is one example of a Website that touts fraudulent claims about receiving stimulus funds. (Source: Officialstimuluspayments.com)

Waiting for your cut from President Barack Obama’s $787 billion stimulus package?

Well, don’t hold your breath.

Since Obama signed the bill into law, sites such as OfficialStimulusPayments.com have been cropping up across the Web promising to expedite your stimulus check from the government.

But, there is no money being given out to individual taxpayers as part of Obama’s package. Instead, these companies are preying on unknowing and desperate individuals bilking them out of as little as $2 and as much as $1,000.

The Federal Trade Commission warned consumers last week that the promise of stimulus money in return for a fee or financial information is always a scam.

Shorty after Obama signed the plan last month, a crop of sites claiming to help consumer access their slice of the pie, sprouted up.

Unlike Bush’s economic stimulus which distributed $300 to $1,200 rebate checks to individuals and families in 2008, the American Recovery and Reinvestment Act will only funnel funds to state governments. Each state can apply for grant money to rebuild or strengthen its infrastructure. There are also a series of tax cuts for 95% of Americans. But for anyone not closely following Obama’s plan, it’s easy to assume the government will be cutting more checks for Americans.

Here’s how it works: An e-mail, online ad, or Website says you’re eligible to get an economic stimulus payment. You’ll either have to mail back a form or submit one online with your address, phone number, and sometimes credit card information. The message might appear to come from a rebate company or look like it’s straight from the Internal Revenue Service (IRS), the FTC says.

Other scams tell consumers that “their grant” is available for a small payment by credit card. But here’s the real gotcha! Hidden way down in the fine print of the agreement is your enrollment in a paid program. Consumers can expect to see several hundred or even $1,000 worth of charges on their credit cards. Yikes, talk about a de-stimulus plan.

In an investigation done by PC World, Financial Crisis Grant, one of the suspect companies, billed customers a monthly membership fee of $79.95, indefinitely. Here’s what the Better Business Bureau had to say about companies like Financial Crisis Grant: “In our experience, companies placing government grant ads have no affiliation with the government, but rather, are third parties offering information that can often be obtained for free from government agencies.”

One of the sites I came across, OfficialsStimulusPayments.com, directs users to “Jessica’s Money Blog,” and the first post reads, “How I got a $12,000 Check from the Government to Start My $5,000 a Month Business on Google.”  To receive the money, users must send in $1.99 for a “Free Grant Kit” and $3 to cover shipping of a Google Home Business Kit. Interestingly enough, after the FTC news conference last week, Jessica’s Money Blog was no longer accessible by its Web address Jessicasmoneyblog.com, according to the Los Angeles Times. Now, the site operates under a different Web address, with the same false information.

Another site, JasonGetsGrants.com, also promises to help you access $12,000 in government grants within 30 days. The friendly, conversational tone is quite convincing. The blog says, “Note: I hate all those ‘get rich quick’ schemes you see on TV where they tell you that you’re going to make thousands on real estate investing or some other crap…”

This is the same phrasing used on Jessica’s Money Blog. What’s more startling about the site is the missing time stamp on the user comments. This is at least a minor indication that the site may not be legit.

Some of the scams encourage you to click on links or open attached forms, which may be even worse than sending in money. Simply clicking the link or opening the document can install harmful software, like spyware, on your computer, leaving your personal information in the hands of an identity their, warns the FTC.

E-con artists are also guising themselves as the Internal Revenue Service, so watch out. If you get an unexpected email from someone claiming to be from the IRS and asking you to call a number or email back personal information, forward it to phishing@irs.gov, then delete it without clicking on any links or opening any attachments. If you think you are the target of a scam, you also can file a complaint with the FTC.

If you think you’re eligible for a government grant, check out Grants.gov, an official government site with free information. And for more information about the economic stimulus package, visit Recovery.gov.

Remember, only sites ending in “.gov” are official government sites, so steer clear of someone offering any type of government money from a “.net,” “.info,” or “.com.”

The typical consumer has access to approximately $19,000 on all credit cards combined, according to Fair Isaac Corp. When finances are tight, 59% say they pay their credit card bills last, according to a survey by Creditcards.com. For a cash-strapped household, it may mean a lack of funds left to pay the mounting revolving debt. “The average person that comes to us for help has seven credit cards,” says Gail Cunningham, spokesperson for the National Foundation for Credit Counseling.

Here’s what you need to consider when seeking out a credit counselor or looking into a company to help you with your debt:

DO YOUR HOMEWORK: Check out the company’s creditability with the Better Business Bureau (BBB) or your state’s attorney general’s office. Don’t be fooled by the non-profit designation either, because in this day and age, there’s no guarantee that the designation means the services are free, affordable, or even legitimate. The Federal Trade Commission has exposed so-called non-profits — such as the National Consumer Council and AmeriDebt – that were funneling money to for-profit companies. When checking out a company with the BBB, Cunningham urges consumers to be on the lookout for “unresolved” complaints. She says be sure to ask, “how did the company respond to the complaints filed? were they resolved in a way that satisfied the customer or the BBB?”

KNOW THE FEES: Some credit counseling organizations charge high fees, which may be hidden, or urge consumers to make voluntary contributions that can cause more debt, so be on the lookout for this too, says the FTC. Be suspicious if you’re asked to pay up front and in cash. “One of [the NFCC] membership standards is that no fee can be assessed prior to delivery of service,” Cunningham says. Review the fee assessment thoroughly. “There are a lot of scam artists charging money for services [that are] free,” says Kathleen Day, spokesperson for the Center for Responsible Lending. Day recommends you “get in writing what [the agency is] going to charge.”

GET IN-PERSON COUNSELING: Credit counselors can offer services through local offices, the Internet or on the telephone but, aim for in-person counseling, according to the FTC. When entrusting someone with your livelihood, it’s important to get a clear sense of who you’re working with. To find a reputable agency look into local universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate non-profit credit counseling programs, says the FTC. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals. You can also check with the highly reputable Consumer Credit Counseling Service for a local branch.

DETERMINE WHETHER A DEBT MANAGEMENT PROGRAM (DMP) IS RIGHT FOR YOU: With a DMP, you deposit money each month with the organization, which uses your deposit to pay your unsecured debts. DMPs will negotiate lower interest rates with your creditors, and even though they cannot talk down the interest rates on student loans, they will still help you manage your payments. If a credit counselor tries to enroll you in a DMP without taking the time to review your financial situation, consider a new counselor. If a credit counselor offers to enroll you in a DMP without teaching you budgeting and money management skills, change services immediately.  Visit the Consumer Education Services Inc.’s Website MyCesi.org, for more on DMPs.

STEER CLEAR OF DEBT SETTLEMENT COMPANIES: You’ve probably seen the “eliminate your debt,” infomercials while up late night worrying about your finances. While the promise of making your debt disappear in a few easy steps may sound tempting,  if the company is offering “debt settlement” it’s more than likely a scam that’ll have you in a deeper hole.

Here’s how it works: You send the money to the organization instead of the creditor. But many of the initial payments go directly to the settlement company as a fee and not to your creditors! What’s worse, the companies negotiate a settlement for cents on the dollar. Say you owe $10,000, once you’ve sent them $5,000 (however many months that takes), they’ll then call your creditor and say ‘hey, this person owes $10,000 but we can give you $5,000 right now, and call it even.” While they’ve been stashing your cash, you’ve continued to run up over-the-limit fees, late fees and other penalties on already out of control debt.

“A legitimate credit counseling agency will offer financial education,” says Cunningham. “We supply them with the tools so they can lead a more financially stable life.”

Check out these government sites specifically for consumers grappling with debt:

U.S. Department of Justice offers a list of government approved credit counselors

Consumers Credit and Budget Counseling Inc. offers free debt advice and access to counselors.

Renita Burns is the editorial assistant at BlackEnterprise.com.

For those seeking financial stability after a layoff, aside from unemployment benefits and severance packages, credit cards may also be a means to supplement income. But they should only be used as a last resort.

“It’s difficult to live off of credit cards unless you can see your way out of it,” says Genevia Gee Fulbright, president and certified public accountant at Fulbright & Fulbright. “You don’t want to end up filing for bankruptcy,” she adds.

Cash reserves should always be the first line of defense, says Kevin Davis, a certified financial planner at Consolidated Financial Services.

Other alternatives include taking out a line of credit, and if worse comes to worst, tapping into your 401(k) plan.

You can set up a 72(t) account, which can set up automatic withdrawals from your 401(k) without any penalties, he says.

Here’s how it works: You rollover your 401(k) to an IRA and apply with the IRS for a 72(t). The IRS will set up a distribution method, however, once an income stream is set up, it must continue until age 59 ½ or for a minimum of five years, whichever comes last, which would be a drawback for younger people.

If you really don’t have a choice except to use credit cards, check out these tips on charging wisely:
Compare teaser rates and out-of-work time: If you’re looking for a new card, compare the introductory rates from prospective companies with how long you expect to be out of the workforce.

“If you feel like you can pay the card off in 12 months, do a 0% interest rate [if it is offered],” Davis says. Since the offer only lasts if the balance is paid down by the time the promotional rate ends this may not fit everyone’s needs. If you don’t think the balance can be paid off within the allotted time, opt for a bit of a higher rate that will remain the same so you won’t be surprised by spiraling finance fees once the introductory period is over.

Pay on time: Sure, it’s a given, but does it always happen? One missed or late payment can hike your interest rate to 18% and in some cases even 27%, says Davis. To avoid late payments Davis suggests setup up an automatic payment plan.

Determine necessity: A designer bag or HDTV is not a necessity. Credit cards should only be used to pay for staple items — food, shelter, utilities, etc. “If you lose your job the first thing you should try to do is get your expenses as low as possible. Use credit cards to pay fixed expenses,” Davis says.

Actively manage your debt: Davis recommends using a Microsoft Excel spreadsheet or other software to track your spending. “You need to know you’re building additional debt and hopefully at some point in the future you will be able to pay it off,” he says. Keep in mind that though your cash flow will pick up once back at work, you do have additional debt that you have to pay off.

Exercise caution before claiming economic hardship: Many credit card companies have hardship agreement programs that can create an affordable payment system for you. But lowering your payments this way can negatively impact your credit score, Davis says. This can hurt you when trying to buy a house, car, or even get a job. Make sure the benefits outweigh the costs if deciding on an economic hardship agreement.

Manage your interest rates: If you haven’t called your card company to talk down your interest rates, hop to it! This can be one of the quickest and easiest measures you can take to make your monthly payments more manageable. If that doesn’t work, you may want to consider a balance transfer, says Fulbright.

“Some balance transfers are permanent rates are permanent,” she says, meaning they last until the balance is paid off.

Again, compare any teaser rates with how long you think you may be out of the workforce.  If you’re backed into a corner and the teaser rate is for three or six months, talk to the creditor, let them know I’ve been laid off, can we stretch this?’” Fulbright says.

Tell us your story. Have you had to “live off your credit cards”? How did you pay them off?

Now, more than ever, establishing security in an uncertain economy has become crucial. With higher than average interest rates, a money market account can help you do so.

Gone are the days of taking six months to a year just to accrue $1 in interest like with most commercial banks. With rates starting at up to 4% for some money market accounts versus .04% for some savings accounts, it doesn’t take long to notice the cash advantage.

I came across a money market comparison chart on RateCatcher.com, which lists some of the more popular financial institutions and their money market features.

Here’s how the accounts work: You deposit cash into your money market account just like a savings account. You can sign up for an automatic investment plan so the money is taken directly out of your checking account. Interest on the accounts are usually compounded daily and paid monthly.

Here’s what makes compounding so fantastic: The bank is paying you interest on money it’s already paid you interest on!

The drawbacks: You can withdraw your money whenever you want, but if you’ve signed up with an online institution, such as ING Direct, be prepared to wait a few days for the transfer transaction to clear. (In some cases, making your money less readily available can be a good thing).

Some institutions limit the number of withdrawals per month and may charge a fee. But there are plenty of money market accounts that charge absolutely nothing and only ask for a minimum balance of $1.

When shopping around for the best money market account, be sure to take into consideration:

–Fees and service charges on the account

–Minimum balance requirements

–Interest rate paid on your balance

Remember, you don’t need a lot of money to start. If all you have to spare is $20 per pay period, start there. While most experts say you should save at least 10% to 12% of your income, if you can’t start there, start somewhere. Work your way up! Once you see the money accumulating it’ll be easier to save more money.

Renita Burns is the editorial assistant at BlackEnterprise.com.

Try a government job

U.S. Census 2010: The U.S. Census Bureau is recruiting temporary part-time works for the 2010 Census. The pay is good, the hours are flexible and the work is close to home, says the Census Web site. You’re Duties: Update address lists and conduct interviews with community residents. Though most positions require a valid driver’s license and use of a vehicle, public transportation may be authorized in certain areas. Call 1-866-861-2010 or visit the U.S. Census Bureau’s Website for more information.

Operation Hope: Not only has President-elect Barack Obama done a stellar job of facing the nation in this time of uncertainty, he’s also enlisting the help of the electorate. You can apply for a job in the Obama administration on the Change.gov Website. Though the site doesn’t specify available positions, the government’s expansiveness and ability to hire workers across sectors means people with a range of experience and expertise can apply.

Field your search online

Indeed, I found a job: I’m sure most of us can think of at least one person, if not yourself, who has found a job through online listings. If you’ve already searched through the usual suspects, Monster.com, Myspace Jobs and Craigslist, cast your net wider.

Indeed.com is a job database that lists over 800,000 positions in an array of sectors. Just type in your desired location, employer or position and Indeed does the leg work. If you’re facing a layoff or have just been let go, remember, be flexible. You may not find the “perfect job” but you may find something that will pay your bills and provide for your family.

Be sure to stay away from sites that offer to help you for a fee.

Join a Yahoo Group: One of the (many) good things about the Internet is the ability to easily find people with similar interests. Browse Yahoo Groups for online communities pertaining to your career field. It’s not unusual for members to share information about job prospects. It can also serve as a support group for people who’ve experienced or may be experiencing a similar situation. Start conversations and get to know the members. There may also be invaluable invites to networking events or tips for useful resources.

What to do in the meantime

It pays the bills: It’s easy to frown upon working at McDonald’s or for a retailer, especially if you’re coming from a high-paying job. But when the bills are due, your landlord won’t accept the fact that your pride won’t allow you to take a “lesser job.” Roll up your sleeves and start applying to jobs everywhere, including a donut shops and outlet stores. Hey, my stint at Blockbuster Video meant free movie rentals and dibs on new movie releases.

Build your skills: If you’re forced to work a temporary job outside your field, it’s imperative to keep abreast of new developments in your industry so that you stay relevant. Remember, the longer you’re out of the field, the harder it may be to get a job.  This can be as simple as logging on to Youtube.com and searching for tutorials. The site is laden with how-to videos from experts. You’ll also want to search for seminars relating to your career that fit into your schedule. Don’t just take in the information—Try it! Who knows? You may be able to start your own business.

Venture into different fields: As you look for a temporary job, spend some time figuring out your latent passions and talents. Try researching careers and industries that have long interested you at the library and online. Start small and develop a plan. It may be as simple as starting a blog or learning html coding. Pick up a book, look for how-to podcasts and videos on iTunes. Find opportunity within the turmoil.

“People today tend to have way too much,” says Sam Simon, chairman of the Telecommunications Research & Action Center (TRAC). “They have too many phones and too many bills.”

Though the average local monthly cell phone bill is $48.54, according to the CTIA, a wireless trade organization, adding texting plans can cost at least $10 to $20 more a month, and Internet usage can be dangerous territory, amounting to an extra $40 a month or more.

Before you shell out extra cash for that whopper of a phone bill, be sure to follow these steps:

Evaluate your plan: Cutting wireless costs can be as simple as removing unused features and add-ons. People “need to make sure they’re on the right plan and they’re not leaving unused minutes at the end of the month,” Simon says. Review your cell phone bills from the last three months. If there are unused minutes or text messages, you might want to downgrade your plan. Conversely, if you’ve been going over your allotted minutes and texts, you may want to upgrade your package. A plan that costs a little more per month may be cheaper than the recurring overage charges you’ve been accruing.

Consider prepaid: Some prepaid providers may not offer the futuristic feature-intensive phones that come with contracts. But if you’re an occasional talker, this may be the plan for you. Simon says if customers are using 200 to 300 minutes a month, prepaid plans are a low-cost alternative to expensive monthly deals. But he cautions that for some there is a per-day surcharge. “I would urge people to never have a prepaid card where there is a daily surcharge because too many carriers out there don’t do that,” he says. Simon recommends looking into Virgin Mobile and Tracfone.

Nix the land line: If you have your own plan or a family plan and everyone in the house has a cell phone, ditching the land line can save a few bucks a month. Here are some questions Simon says people need to consider before cutting a land line.

How often do you use the land line?

Are you out of the house a lot?

How many cell phones do you have in the family?

“If have four cell phones and are working a lot, the odds are you don’t need a land line,” Simon says. But if you find it hard to get rid of the house phone, talk to your provider about a limited service plan. The monthly fee is lower than a regular phone bill but you’re charged for any incoming or outgoing calls. Some limited service plans offer unlimited incoming calls and long distance features for house phones.

Be a negotiator: Negotiating is an art, and if you’ve had run-ins with creditors, it’s an art most of us should learn to master. “I think your best bet is to call you provider and ask to speak to a supervisor,” Simons says. But he warns, since carriers are not given as much discretion anymore, it may be harder to negotiate. But it’s still worth a try, especially if you’ve run over your minutes or text allowance. If you’ve paid on time or have been a longtime customer, some providers may credit the fee or at least part of it.

Understand your bill: Aside from reviewing your bill for any usage patterns, it’s important to understand all charges. Understand peak calling periods, area coverage, roaming and termination charges, says the Federal Trade Commission. Take advantage of the trial period offered by most providers. Use this time to make sure the service provides coverage in all the places you will be using the phone, i.e. home, work, and places you frequent.

Check out my cost-cutting blog to find more on what all cell phone subscribers should know.

Buy at the end of the month. Apparently salespeople in this industry have quotas too. So, if you’re looking to buy a cell phone or plan, sales representatives maybe a bit more flexible towards then end of the month when they’re grinding to meet that quota. Sweeten the deal by offering to opt for a family plan. Also, be sure to do your research before hand. Know what other providers are charging for the same or similar services. Companies may be even more inclined to add more to your package or offer a greater discount.

No service, no fee. If you’re moving overseas, even to an area of the country your provider does not service, you do not have to pay a cancellation fee. Be sure to check your contract to verify. There’s no reason you should be charged roaming fees or international fees, since it’s not initially what you signed up for. You may even want to talk to a supervisor to get out of your contract.

You can call 411 for free! This is probably the best piece of information I found since my family dials 411 more than we dial each other. Dial 1-800-FREE-411 or 1-800-GOOG-411, which will connect you to Google’s directory service. This can save on those exorbitant surcharges just for calling information.

Above all, understand your bill. This is crucial, as it can prevent wasteful spending on features you don’t need or never knew you had. Set aside a few minutes one day to call your provider and have every charge on your bill explained. Tedious? Maybe. Helpful? Without a doubt. I took the time to do this over the summer and found that my mother’s line on our shared plan was being charged megabytes usage. Nevermind the fact that she just learned how to open her e-mail a month ago. The Federal Trade Commission offers a breakdown of every charge on a sample bill.

Cell phones are convenient and a great way to keep in touch with family. They can even occupy your time when you’re simply bored. But there’s no need to break the bank paying the bills.