Lance Cothern of Money Manifesto told Time.com that the reason why people in the United States are financially strapped is because they overspend on cell phones and cell phone plans when they can’t really afford them. This predicament can be avoided easily by buying a prepaid phone for a set price and choosing a month-to-month plan that offers more for less. Unlimited talk, text, and data plans are offered by a number of different carriers. It’s up to the individual to determine whether or not the terms and conditions of a plan meet their needs and budget.
Here are five financial benefits of a prepaid phone:
1. No contract to sign to get the phone of your choice. Some providers such as Verizon are doing away with two year contracts because of pressure they received from customers. With prepaid phones, you don’t have to make a long-term agreement with a company in order to get a discounted phone. You choose the model you like best, pay for it in full, and use it once it’s activated.
2. Different models, carriers, and phone plans to choose from. You’re not stuck choosing the free phone at a carrier you dislike just to save money. There are a number of different types of phones available from the top carriers as well as a number of smaller telecommunications companies.
3. Ability to upgrade whenever you want not when the carrier tells you to. If you want a new phone, you don’t have to wait for your contract to renew to get one. You simply buy the phone, get your number switched over, and carry on with business as usual.
4. Fixed price monthly phone plans. Your bill doesn’t fluctuate the way it does when you have a contract or don’t pay for unlimited talk, text, and data plans. For one convenient price excluding taxes and fees, you’re able to prepare for the expense by adding it into your budget without fear that it will cost more than what you put aside to pay it.
5. Free minutes and other incentives to share the word about the carrier and its service. Many prepaid cells come with free minutes and rewards programs for spreading details about their service via word of mouth.
Now that you can see the financial benefits of owning a prepaid phone, it’s time to find the model, carrier, and monthly plan that fits your needs and budget. When shopping for prepaid phones, compare prices and retailers because certain brands go on sale often. The Citizens Utility Board suggests visiting a review website like PrepaidReviews.com for up-to-date information about the different prepaid phones, plans, and prices offered through each carrier.