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Most people don't need an unlimited plan. In fact, many consumers would be better off switching from a regular monthly bill to a pay-as-you-go plan. They could save hundreds of dollars per year.
How does prepaid work? Each company is a little different. But generally you buy the phone. Some are very cheap, starting at $10 for the simplest phones. Then you buy minutes to load onto the phone. A dime a minute is a good price; a quarter a minute is mediocre. You can buy minutes online or in stores, in the form of a card with a code that you enter into the phone.
Some of the better deals come from such providers as AT&T, Tracfone and sister company Net10, T-Mobile and Virgin Mobile. These companies also ranked high in a recent J.D. Power and Associates customer-satisfaction survey about prepaids.
You can probably retain your current cellphone number by "porting" it to the prepaid carrier. And call quality is generally good because prepaids use the same wireless networks as the traditional carriers. Of course, quality varies by region and community.
Reasons to use prepaid phones:
•Taxes and fees. Prepaids have no tacked-on taxes and fees.
•No contract. You have no obligation to the wireless provider. No monthly bills, no early-termination fees and no credit checks.
Many consumers on a tight budget go for a prepaid cellular phone plan. This is practically due to the fact that a prepaid cellular phone plan saves money and limits credit by setting a limit to how much a consumer can spend or use.
Another advantage of availing prepaid cellular phone plan is that you don't have to fall for a debt. In other cases, you don't even need a credit card to use its services. Virgin Mobile Phone, for example, offers prepaid phone cards in their Virgin Megastores. So, all you have to do is get if off the rack, give your cash to the cashier, and in minutes, enjoy making calls.
The prepaid cellular phone plan is easier on the wallet and is also free of hassles. In addition, prepaid plans require no commitment to consumers unlike in post paid plans. The consumer is not required to pay a set amount of cash in set time intervals unlike in post paid plans. Instead, the consumer only pays how much he plans to use. Post paid plans have penalties wherein the consumer has to pay when a consumer fails to meet the terms of the contract. Prepaid plans, on the other hand, have no contracts and no financial obligations.
With a prepaid cellular phone plan, there are no additional headaches in using a cell phone. All you have to do is buy a mobile phone and then load it with prepaid credit. The minutes of calls and the number of messages you can send on your phone depends on how much you loaded it.
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