Advantages and Disadvantages of Owning a Prepaid Cell Phone

The current U.S. economy has caused many Americans to find ways to save money and cut back on household expenses. There have been recent reports on the news abut the various ways Americans are saving money and spending less. One of the most popular ways people are cutting back is by reducing their cell phone bills. People who have had a cell phone with a contract for years are switching over to prepaid cell phones.

The sudden switch to a prepaid cell phone has increased the popularity of prepaid plans. Prepaid cell phone plans are so popular because they allow people to lower their cell phone bills and they no longer have to worry about receiving a bill in the mail that is over $200.

Cell phone companies are also reaping the benefits of the popularity of prepaid cell phones. Companies are introducing new prepaid plans and new cell phone companies are being created. The bad economy has allowed cell phone companies to profit from the popularity of prepaid cell phones.

Listed below are the advantages and disadvantages of owning a prepaid cell phone:

Advantages

1) No contract

2) No cancellation fee

3) More control over cell phone charges

Disadvantages

1) Small selection of phones to choose from

2) Phone reception might be low quality

3) No smartphones are available with prepaid plans

Two cell phone companies that have received the most attention for their prepaid plans are Straight Talk and Boost Mobile. Straight Talk is a new company that was created by Tracfone but uses Verizon Wireless' network. The prepaid plans the company has are $30 a month for 1000 minutes and it also includes 1000 text or multimedia messages. The other Straight Talk plan is $45 a month for unlimited minutes and text messaging. One of the downsides to Straight Talk is customers only have three phones to choose from and each phone is considered to be outdated.

Boost Mobile only sells prepaid phones and offers a plan for $50 a month with unlimited minutes and text messaging. Compared to Straight Talk, Boost Mobile's phones are more up to date and the company also has a bigger selection of phones.

If people who are thinking about switching over to a prepaid plan, they should do a lot of research because there are several companies that offer prepaid cell phone plans. Taking the time to do research will not only help people save money on their cell phone bill but it will allow them to choose the best phone and plan that fits their lifestyle.

Source:

http://www.straighttalk.com/