To minimize any surprises, arm yourself with the information you need before you start shopping and start talking for less.

Determine Your Needs. The first step is to ask yourself how much you'll use your phone. If you only use the phone for emergencies, a smaller, lower monthly plan may be the most feasible. If you plan to use your cell phone every day, a higher-minute plan may be the best option. Both higher- and lower-minute packages allow a set number of minutes and a cost per minute of going over those minutes, which is generally significantly higher than the "in plan" rate. "The most expensive mistake you can make is signing up for a calling plan with a rock-bottom rate and exceeding your allotted airtime each month."

Choose a Phone You Will Use. Not everyone needs the Internet, walkie-talkie features and a camera on their cell phone, but all those features, and more, are available on the newest models. The key is to choose the phone that allows you to meet your calling needs, rather than additional features that you won't use.

Compare Plans. Do your homework before walking into the store and know the competitors" rates as well. "The best way to negotiate is not to demand a cheaper plan but to go in with information," says Steve Rhode, a money coach and spokesperson for debt counselors Myvesta, a consumer education organization. "Cell phone companies have all kinds of different promotional plans that they never tell people about."

Consider Pay-As-You-Go Plans. For ease and convenience, most providers offer "hassle-free" pay-as-you-go plans that allow you to pay only for what you use. "I buy the minutes that I need for one month, or for one week and I only purchase more when I run out," says Tandra Johnson, a second-year graduate student. "It really works for me."

Get References From Family and Friends. The best referrals come from satisfied customers. Ask friends and family members about their experiences with their current or past service providers. Ask them about sound quality, coverage areas, billing problems, the ease of returning phones and cancellation fees for terminating your contract.

Ask About Rebates. With so much competition between cell phone providers, more companies are slashing prices and offering rebates. "There are always rebates," says Joni Blecher, who writes the "Ask the Cell Phone Diva" column for CNET. Rebates can add up to lower the cost of your phone purchase.

Ask About a Test-Run. "When you sign on the dotted line, ask how many days you have to try it out," says Blecher. This way, you have the opportunity to sample the phone and its quality without being tied down. Many providers allow a certain number of days following purchase in which you can return the phone for a full refund, without penalty.

Walking into a store with knowledge about cell phone terminology levels the playing field and allows you to negotiate the best deal. "Good data," Rhode says, "leads to good solutions."