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Debt consolidation may help with debt when switching to prepaid cellphone not enough
By Oscar Monfort on Apr 10th, 2010
Cutting back on unnecessary expenses is a way consumer can find help when trying to pay off debt, which could include focusing on their cellphone plans.
A recent report from telecommunications think tank New Millennium Research Council shows that many cellphone users opted to sign up for a prepaid device, versus contract-based offers. The fourth quarter of last year represented the first time that new prepaid devices outpaced their contract counterparts.
Jose Guzman, NMRC project coordinator, noted that the think tank made a prediction in 2009 that such a shift could occur.
"Thanks to the recession, the U.S. cell phone marketplace continues to undergo fundamental changes that will just get bigger as the economic downturn deepens," Guzman said.
Prepaid devices may be generally less expensive than contract-based cellphones and allow users some flexibility in their budgets. Along with their cellphone contracts, other areas consumers may consider cutting back include their level of cable- or satellite-television service or the amount of money they spend on dining out.
However, cutting back on these expenses may still not be enough when it comes to mounting credit card bills, especially as people use plastic to try and make ends meet. One option troubled consumers may consider is debt consolidation, which can help shrink bills through lower interest rates.
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