Prepaid Cell Phone Service Vs. Traditional Contract Plans

February 22nd, 2010

Gina Madison asked:


Using a prepaid cell phone service might just be the smartest decision you will ever make. It can simplify your life and save you a ton of money in the long run. Sure beats signing up for a ridiculously long contract with traditional cell phone service providers!

Chances are you’ve heard some horror stories about all the fees you can be penalized with under a contract plan. If you’re anything like most cell phone users, you’ve probably even been a victim of this. There are roaming fees, overage fees and administrative charge increases – where does it end?

Have you ever opened up your cell phone bill and been shocked by charges way higher than you were expecting? Maybe it was due to a simple mistake (like letting your niece borrow your phone), or because you were simply unaware that your minutes were running low.

Whatever the case, you know that the fees cell phone companies slap you with are unfair. After all, it couldn’t possibly cost your provider that much more for the extra talk time you used… Why the huge jump in cost per minute?

Due to the absurd fees and underhanded tactics that most contract wireless providers employ, more and more people are making the switch to a prepaid cell phone service plans. In fact, 60% of the world’s wireless users are now using this “pay as you go” type service.

Prepaid cell phones have many advantages over traditional contract plans. The biggest advantage by far is freedom.

With prepaid cell phone service, you will never be forced to abide by a contract with page after page of fine print. You know exactly what is expected from you right from the start, so there will never be any surprises. If anyone is in charge, it’s you – not those huge bullies known as wireless plan providers.

If you aren’t happy with the reception and want to switch to another company, you can do so in a heartbeat. Just try something like that with a traditional contract plan; you’d be forced to pay anywhere between $150-$400 per phone line for cancellations!

Another plus is that you’ll be smarter with your money when you buy prepaid minutes. When you sign up for a regular cell phone contract, every month you’re basically paying for a predetermined amount of talk time – regardless of whether you use that time or not.

It’s like being forced to pay for 100 gallons of gas each month. If you only use 80 of those gallons, the remaining 20 still get taken away from you.

With a prepaid plan, you know that all the minutes you paid for will eventually be put to good use. Once they run out, you’re free to decide how much you’ll be needing. You never have to settle for letting the wireless company take your money without giving you anything in return.

All in all, it’s safe to say that most wireless users will find prepaid cell phone service to be the best fit for their lifestyle. Hopefully, the days of hidden fees and 2 year contracts will soon be just an unpleasant memory.


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