When it comes to cutting the cord on your cable subscription, there are a lot of factors to consider. For most people, ditching cable is all about financial savings. After all, with Americans paying more than $100 per month on average for pay-TV services, according to Leichtman Research Group, anything to cut down that cost will help. With that said, it’s important to be cautious when cutting the cord. Plenty of hidden financial challenges threaten how much you can save.
Read on for the hidden costs to look out for when cutting the cord — and how to combat them.
[See: 6 Ways to Treat Yourself on a Budget.]
Hidden cost: Paying early termination fees. Cable contracts often come with an agreement from the subscribers to pay a fee if they cancel the service earlier than the agreed-upon end of the contract. These fees can be hundreds of dollars, making for an expensive transition away from your cable subscription.
Workaround: Get on the phone. The best way to avoid contract fees is to not sign up for a long-term contract in the first place. That said, if you have signed one, it may be worth it to wait out your contract — especially if there’s not much time left on it. When you do decide to cancel your subscription, make sure to get on the phone with the cable company, armed with the knowledge you need to make sure it doesn’t rope you in with promotional offers. Be firm and knowledgeable, and you may be able to talk it down a bit on that fee.
Hidden cost: Keeping and finding fast internet. It’s essential to have internet that is fast enough to support smooth streaming of your television content. If your current internet is bundled with your cable package, it may become more expensive as a standalone item once you cancel the television portion of your bundle. For example, Comcast’s Xfinity has “Triple Play” deals that offer TV, voice and internet for one package price. If you get rid of the cable portion, there is a different price structure for internet-only deals.
Workaround: Call the company or switch providers. If you choose to stick with your cable company as an internet provider, you should get on the phone with a representative and try to negotiate a cheaper internet deal than the normal standalone price. If you are prepared and firm, there’s a good chance you’ll be able to talk it down a little.
On the other hand, it might be worth it to consider switching internet providers. If you struggle to find internet options from other companies, a provider search tool could help you see what’s in your area and compare deals. If you’re willing to put in some research, you should be able to find one within your budget.
[See: 10 Big Ways to Boost Your Budget — Without Skimping on Your Daily Latte.]
Hidden cost: Buying a smart TV. If you have an older TV that isn’t built to interact with Wi-Fi and streaming services, it may seem like your only option is buying a smart TV. While they aren’t as expensive as they used to be, buying a new TV can add a big cost to cutting the cord. Prices for new internet-enabled smart TVs can range from $200 to almost $2,000, depending on size and quality, but even if you’re just looking a mid-range set, you can expect to pay at least $300 to $400.
Workaround: Get a streaming device. It’s not necessary to buy a smart TV to use streaming services. In fact, with a streaming device such as Roku or Amazon’s Fire TV Stick, you can connect almost any TV to the internet and access all the streaming content you want. These external devices are generally easy to set up and relatively inexpensive. However, some offer access to more services than others (for example, Google and Amazon don’t allow their services to play on the other’s devices), so make sure to do a little bit of research before you buy one of your own.
Hidden cost: Signing up for too many streaming services. One mistake a lot of cord cutters make is subscribing to too many streaming providers all at once. If you select too many add-ons or oversubscribe, you can see monthly TV bills that rival cable subscriptions, especially if you’re a sports fan. Services such as Sling TV and DirecTV Now can end up being pricey if you combine too many a la carte options and higher-priced packages.
Workaround: Prioritize and know what you’re getting. The best way to avoid paying too much for streaming is to go into the video-streaming service selection process with a concrete knowledge of your television needs. Once you know the channels and features you can’t do without, you can decide which service meets those requirements. From there, you can add on packages and supplementary services as needed. Make sure to know in advance what your selection includes. For example, you may be used to having a digital video recorder included with your cable package, but some services, such as Hulu’s live option, charge an additional cost. Netflix offers a lot of on-demand content, but if you want to watch on multiple screens, you’ll need to pay for more expensive subscriptions. Knowing these details can help you avoid paying too much for extras you don’t need or missing out on things you do.
[Read: 7 Best Inexpensive Netflix Alternatives.]
When you cut the cord, there can be a lot of hidden costs to make your experience painful. However, with research and a little legwork, you can avoid these costs and save money while building a great streaming setup of your own.
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Cord-Cutters, Watch Out for These Hidden Costs originally appeared on usnews.com
