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Prepaid Cellular Phone Plan: The Good and Bad Side

By Alice Sy | August 24, 2008

by Alice Sy

A prepaid cellular phone plan is similar to other kinds of phone plans available in the market. The main difference is the manner of paying the bills. In a post paid plan, you can use the phone service before you pay for your consumption. In a prepaid plan, on the other hand, you get to pay ahead and then use the phone service.

Many consumers on a tight budget go for a prepaid cellular phone plan. This is practically due to the fact that a prepaid cellular phone plan saves money and limits credit by setting a limit to how much a consumer can spend or use.

The consumer purchases a set amount of prepaid credit in which he uses until his balance reaches zero. After that, he can no longer use the phone services. Prepaid cellular phone plans thus give a psychological impact to consumers in a way that they limit their consumption with the amount of prepaid credit they have, making them save money in the process.

How to use a prepaid cellular phone plan? It’s simple. All you have to do is buy a cell phone. Then, set your prepaid plan and the amount of service you wish to enjoy. For some plans, you pay for the number of minutes you want to use up - say between 30 to 1000 minutes.

For others, you enjoy a prepaid cellular phone plan service base on the amount of calling card you purchased, like $25. When you used up the time, you phone will simply stop the call and you have to buy for another card. In this way, you won’t end up over charge.

Prepaid cellular phone plan cards are available in the internet. You can purchase services at a carrier’s website. You can also buy them at carrier stores. You can have them in monthly rates, also called autoplay. Here, your credit card is immediately charged a certain amount every month. Whenever you call, the per-minute charge is immediately deducted to the amount charged on your account until there will be no more service.

Prepaid cards can be purchased in various places offline. They can also be bought online in carrier websites and carrier stores. Prepaid cards have expiration dates when you load them into your phone. You have a number of days or weeks to use the load depending on the amount of the prepaid card you purchased.

Plus, prepaid cellular phone plans have expiration date. For example, if you haven’t consumed the entire service in 30 days, the carrier will eat it up after the due date. So, it is wiser to think and weigh matters first before choosing the best cellular phone plan you want to use.

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Topics: Business |

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