Advantages of Prepaid Plans

You may be wondering what the advantages of having prepaid phone plans are and how having one could be beneficial. You’re definitely in luck because I’ve had experience with multiple prepaid cell phones (and plans) as well as contracted plans (and their phones).

How much do you talk?

Most cell phone plans start at 400 minutes of talk-time. Do you ever talk 400 minutes each month? I don’t know about you all, but I have a work-phone which I make most of my day time calls…which pretty much negates the need for a plan with unlimited nights and weekends. I mean…what’s the point of paying $50+/month for only a couple hundred minutes?!? If you talk non-stop on a phone, a prepaid plan isn’t for you.

Are Prepaid Phones Pieces of Crap?

Honestly…yes they are…but so are the phones offered with contracted plans! Strangely enough, I’ve had prepaid plan phones last longer than contract phones. Regardless of what type of plan you’re purchasing, I’m convinced phones are engineered to break after half a year. The main difference between the two types of phones is: Prepaid phones are a whopping $20-$100 while contracted phones generally start at around $200-$300.

When you sign a contract – the majority (if not all) of the phone’s cost is waived. This is a trap! Companies want you to be lured into signing contracts and practically giving away phones is a great way to do so. Each phone costs a couple bucks to make in a factory and their turn-around retail value is set around %3k. Don’t believe me? Look it up.

Can I get the internet on my prepaid phone plan?

Eh…let’s go over why you are considering a prepaid phone plan… You want a basic phone with basic coverage. If you want a bunch of fancy extras, you might as well sign a contract. However, if you really want internet access on your prepaid phone plan, it’s possible. Just keep in mind, data rates are extremely expensive!

I only use my phone during some parts of each month

Are you one of those people who only use the phone when you’re going out of town? Well, prepaid phone plans are perfect for you! Suppose you don’t use the phone for a couple months, you aren’t still paying $40+ (plus tax) for nothing…all you have to do is keep the minimum minutes on the phone. This is determined in the small print of the prepaid plan information.

I just need a phone for a few months

The GREAT thing about prepaid plans is that you can cancel them at any time…simply by not putting any more money on the phone. You won’t have huge contract cancellation fees such as Sprint’s $200 charge.