Prepaid Cell Phones - The Smarter Mobile Phone Option
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Pretty much everyone has a cell phone these days. The cell phone market has recently been undergoing some serious changes. The changes have been in the wings for a while now, but are only getting more noticeable.
The standard two year or so contract model that has been popular in the US is being challenged rather heavily by the prepaid cell phone model. In order to compete in a marketplace with more options and savvy consumers (not to mention in a time of economic crisis), the big wireless providers have been marketing prepaid and pay as you go cell phone options.
Prepaid cell phones are a great option for a few reasons. One of the big reasons this type of phone is becoming more popular, as I mentioned above, is that you do not have to sign a contract. Many people despise that fact they are stuck with one company for a given amount of time and cannot leave the company without paying a several hundred dollar fine. It's pretty much highway robbery in many people's eyes.
I understand why the wireless service providers want the consumer to sign a contract, just like you essentially do with your land telephone line and other service contracts you get into, but I still think the termination fee is a joke. I've even heard that it may be unconstitutional. After all, these companies are selling air. I'm only half kidding.
Another reason looking into cell phone prepaid options is a good idea is because you have more control over the allocation of minutes. You will overall use fewer minutes (usually) because you purchase them "as you go." If you run out of minutes, you won't use your phone until you purchase new ones.
You will get better at gauging how many minutes you use each month and how much airtime you buy. If you sign a contract monthly plan, you will be forced to pay for a given quantity of minutes month in month out. So even if you use only 400 minutes and pay for 700 minutes, you get no refund. It's sort of like paying taxes early. Why do it? Why not claim 9 exemptions and keep more money--then pay your taxes at the end of the year.
One possible downside to having a prepaid cellphone is that the handset may be more expensive and you may not get a free or discounted one like you often do when you sign a contract. This is not always the case, as sometimes you can find a free or discounted phone on special offer.
Some of the popular pay as you go cell phone companies are tracfone, boost mobile, and cricket. Verizon, t-mobile, and AT&T also have some competitive plans that may work for you.