4 Ways Prepaid Phones Save You Money

Living without a phone is nearly impossible, but there is no rule that says it has to be expensive. In fact, getting rid of a cell phone contract can potentially save you hundreds, if not thousands of dollars each year. Perhaps, you’ve considered it, but haven’t made up your mind yet. If so, here are four ways that going with a prepaid phone instead of a cell phone plan will save you big money.

1. It Keeps You Out of Expensive Contracts

According to The Penny Hoarder, getting a cell phone on a contract really isn’t such a good deal for the average consumer. Cell phone companies entice their customers into buying a new phone on contract, which locks them into an expensive contract that’s far more expensive than the phone itself ever was. Family plans, with their revolving contract end dates, sting even worse. The average contract can run you $80 a month, whereas you can get a prepaid phone for a little over $30 a month.

2. You Save on Overage Fees

You’ll save yourself both a credit check and a monthly overage fee if you go with a prepaid phone, according to an article on InvestopediaOverage fees can cost you $10 to $15 for a pop. If you find that you still need to reach out to people after your gigs are used up, you can make up the difference by using services like Google Hangout for free.

3. Control the Costs of Family Phone Plans

An article on Nerd Wallet points out that a family plan on a prepaid phone will cost you around $100 or so. These plans come with four phone lines. They also will often give users unlimited talk and text. You’re also not locked into a contract with revolving end dates, making it easier for you to take control of your family’s phone habits and the effects they have on your wallet.

4. You Won’t Buy a New Phone

The temptation to buy the latest and greatest new gadget figures in strongly for many people when it comes to buying a new phone. Very often, these tech lovers will be the first in line to get the latest phone model when it’s released.
However, that’s not such a draw for the person who goes the prepaid route. He/ she understands that the basic function of a phone is to call people. Anything else is just extra. Not buying a new phone every year or so can save you hundreds.

If you want to save big bucks each year, getting a prepaid phone is a good way to do it. Most people who opt for a prepaid phone service find that they spend significantly less each month on phone fees. This is especially true if they opt out of a contracted family plan. They also save money because they’re not as inclined to buy a new phone when their old one still works. If you feel you’re paying way too much for your phone each month, maybe it’s time you look into a prepaid phone instead.

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