media logos

Prepaid Phone News

Being tied down to a strict two-year contract can be daunting, especially because of the associated fees involved if the contract is broken; which may be the reason so many cell phone users are turning to pre-paid plans instead to avoid paying more with conventional contract carriers and being stuck with them on a long-term plan. Logan Abbott, the president for MyRatePlan has stated “I predict in 2014 we will see a bigger number of customers switch to prepaid cell phone plans than any previous year.” Which is news that doesn’t come to much surprise as consumers are finding contract-free plans more appealing.

Prepaid cell phone plans are also becoming more available throughout the various service proviers, which is another factor consumers are finding more appealing. Cricket, Boost Mobile, Straight Talk, Aio Wireless, and Virgin Mobile are several that offer reasonably priced prepaid plans. Customers can even find an unlimited plan (unlimited text, talk, and data) for under $50 among several providers. T-Mobile is one of the more expensive providers, with their plans ranging from $50 to $70 depending on the features you choose.

There are a few downsides that come to choosing a prepaid plan though; those with prepaid service tend to roaming issues and even no service at times in certain areas, whereas customers on a contract plan (Such as with Sprint) will roam (and thus, have service) when off network. Prepaid users are just out of luck because they’ll simply have no service at all. Prepaid plans that do incorporate roaming into their plans charge. Another downside, because there’s no contract, customers who sign up for a prepaid plan will pay nearly full price when purchasing a new phone as opposed to a customer on a contract plan who may get their’s at a heavily discounted price.

Despite the few downsides, prepaid plans are seemingly becoming more and more appealing, especially to those on a budget. A Verizon customer, on average, will pay almost $150 a month for their service while a customer with Sprint will pay just a little more than $140 and an AT&T customer paying about the same. And despite potentially paying more on a new phone, it eventually saves the customer money in the long run since their monthly prepaid plans are so much cheaper. Those on prepaid plans also have the flexibility of changing providers, plans, and their phone whenever they please since they’re not tied down with a contract.