Are you an infrequent cell phone user; maybe using your phone a few times a week to call home or send an occasional text message? If this is the case, prepaid may save you hundreds of dollars each year. If you are a frequent user; several calls a day, text messages, and checking messages online; prepaid can save you hundreds of dollars each year as well, and with no contract.
How Prepaid Plans Work
New and improved prepaid carriers have made it easier than ever to join their plans. When you active your account and provide your banking or credit card information, there is no need to buy refill cards, call and reload money to your account, or even worry about running out of time. Most services allow you to put money in reserve so when your account runs low, it is automatically reloaded. You get the amount and you are alerted when your account is low.
Daily Fee Plans
Most prepaid plans offer the typical buy a card for a specified number of minutes. When the minutes are depleted, you must buy another card. Some prepaid carriers offer a plan where you pay a daily fee and get free nights and/or weekends. Your anytime minutes are deducted from your card at the rate specified. Some charge this fee whether you use the phone or not and others only charge you if you use the phone. This includes text messages, receiving a text, or even checking messages.
Before signing up with a prepaid carrier, review their terms and learn what is include in your plan. In most cases, it is still much cheaper than signing a two year agreement.
Surcharges and Fees
Have you ever wondered why your $39.99 a month plan ends up being well of $50 each month? By the time user fees, taxes, and surcharges are added onto your monthly bill it can increase your monthly bill significantly. With prepaid plans you typically pay one price so there are no surprises.
The only downside to this service is that you do not get a free phone like most companies offer with a contract plan. The solution is simple, go to your local electronics store and purchase a phone. Search EBay for new and used phones that are compatible with the carrier. Browse the free classifieds for used phones.
Using the tips on how to save money on cell phone plans can help you make a conscious decision whether to switch or not. Is your plan is up for renewal? Why not try a prepaid service and see if you like it. You can always go back to your old carrier.
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