T-Mobile is Automatically Updating Phone Plans and If You Don't Opt Out, It Could Cost You Hundreds

What happened 

Some T-Mobile customers will be automatically upgraded to a new mobile service plan in November, and the mobile carrier hopes to shift customers away from its older plans. Impacted customers should prepare to pay more, as the brand's newer phone plans cost more money. 

Customers with the following older unlimited phone plans will be affected:

• One
• Simple Choice
• Magenta
• Magenta 55 Plus 

Those who want to opt out can contact T-Mobile's customer service line. But there is no official word on how long customers will be allowed to remain on outdated mobile plans. The carrier will begin to send notices to impacted customers on Oct. 17. Those who don't opt out can expect their plan to be updated and their rate to increase starting with their November billing cycle.

So what

This is news worth knowing if you're a T-Mobile customer with an older mobile phone plan. Unless you agree to the new plan and price or opt out of the switch, the change will impact your checking account. In a recent CNET article, a T-Mobile representative noted that, "there will be an increase of approximately $10 per line with the migration." 

While $10 may not seem like a lot of money, it adds up to an additional $120 per line annually. The change could cost customers with multiple lines several hundred dollars per year. If you're on a tight budget or working hard to meet financial goals like building an emergency fund or paying off credit card debt, the additional cost of your mobile plan could slow your progress. 

Now what

If you're subscribed to an older plan and don't want to switch, you should contact T-Mobile to request that your plan not be changed. If you accept the automatic plan change, you'll want to budget for the new higher rate so your future phone bill doesn't surprise you. 

Here's an easy way to save money on your phone bill: T-Mobile offers discounts of $5 per line to customers who enroll in auto-pay. While the carrier no longer allows customers to pay automatically using a credit card, you can connect a debit card or bank account and get a discount. 

But only do this if automatic billing works well for your personal finance situation. The last thing you want to do is accidentally overdraw your bank account because you forget about an auto-pay bill. Another way to get around this switch is by comparing phone plans from other carriers. It may be more affordable for some individuals and families to switch mobile carriers.