How your data plan could end up costing you hundreds in extra fees


My teenage daughter blew through her monthly data allotment on her smartphone in mere days when the month started. What ate her up? I think it was Snapchat.

Throttling is a better alternative

She’s not alone. I saw a crazy chart from the Wall Street Journal that was illuminating. The chart explains that if  you web surf on your phone 2 hours a day every day of the month, you will use less than 1 GB of data during the whole month. (Roughly half of us use less than 1 GB a month.)

On the other hand, if you watch YouTube for just 5 minutes a day each day, you will blow through 2 GBs of data in a month! That’s pretty much true for Netflix and the social media sites with a lot of video content. Hulu is a little more forgiving with how they gobble up your data.

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Here’s what you need to know: The smartest play right now is to have a smartphone plan that doesn’t have add-on charges when you go through your data allotment.

Any of the bargain service providers will just throttle your connection for the rest of the month when you pass your data allotment. That’s how it is for my teenage daughter. When she passes that point, she know she has to go on Wi-Fi if she wants to do something.

But here’s a special warning: If you are on Verizon and you go over your data cap, your wallet will get blown to smithereens! Do not leave yourself exposed with a plan that allows for data overages…because you’re talking about huge additional costs.

As an alternative, both T-Mobile and Sprint still offer various plans with unlimited data. That sure beats a massive overage bill any day of the week.

So if you just cannot resist watching video content, hear me now and act now. I want you to get out of a plan that’s going to charge you those extreme overage fees. Because it’s my job to help you protect your wallet!

Read more: Netflix raising rates again


Want more money-saving advice? See our Money section.

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