Hidden Costs of Cutting the Cord
Had it with your enormous cable bill? Ready to cancel your service? If you’re thinking about ditching cable to save money, be sure to investigate what it will actually cost you. Cutting the cord tends to have a ripple effect that can leave you owing more than your original bill. If you don’t ask the right questions now, you may be forced to pay more later.
To find out if it’s worth it, Mountain America Credit Union put together this list of possible charges you should be aware of:
Early termination fee
Most cable contracts include a termination fee for canceling your service before the end of the contract period. These fees can be several hundred dollars, which could make canceling an expensive option.
Obviously, the best way to avoid these fees is to not sign a contract in the first place. However, if you’re already obligated, you still have options. Contact your provider and ask them if they would waive or lower the cost. If you’ve been a long-time customer or if you’ve had some big issues, they may be willing to do something. If you are denied, weigh the time you have left on your contract against the early cancellation fee to decide on the best time to terminate your service.
Speedy internet
With multiple devices and streaming services in most households, a fast internet speed is vital. If you currently bundle your internet with other cable services, you may find that the cost for stand-alone internet service from your cable company is much more costly.
Again, get on the phone with your provider. Negotiating a better deal may be as simple as asking for it. But if they’re unwilling to budge, shop around for a better price.
A smart TV
If you have an older TV that isn’t capable of connecting with streaming services and Wi-Fi, you’ll probably have to upgrade to a smart TV to drop cable. And, while they’re less expensive than they used to be, it’s still a significant purchase.
You don’t have to upgrade to a smart TV to access internet and streaming services. Most TVs can connect with an external device like an Amazon Fire TV Stick or Roku. In addition to the cost of the device, which is relatively inexpensive, determine if you’ll have access to the shows you want. Different devices offer access to different services.
Over-streaming
A common reaction to cutting the cord is to subscribe to several streaming services right away. Individually, they are relatively inexpensive. But, they can add up quickly. Pretty soon you’re right back to paying too much.
Research your options, find one or two services that meet most of your needs and live with those for a few weeks. If you feel you’re still missing some of your favorites, decide if you’re willing to pay more to get them.
Sports
Definitely the toughest niche to replace after leaving cable. After having access to most sports, home and away games, from all over the world, it’s difficult for any sports fan to be happy with the local matches offered with an HD antenna.
Every major sports organization offers a streaming service—MLB.TV, NFL Live and NBA League Pass, for example. If you follow one or two teams, you can add their service for a reasonable amount. But, if you’re an all-around fan, it may take more of your paycheck to keep up with the games you love to watch.
Bottom line: do your homework before making the switch. Research the costs and then decide what option is best. You may find that cable remains the right choice for you and your family.
