by Sorah Devlin

Created on: August 18, 2009

Ask someone what the one object they can't leave their home without is. Chances are, they'll reply its their cell phone. With so many different options for cell phone plans anymore, it can sometimes be confusing on what is the best option. Prepaid phone plans can seem a much better option for those who are torn on what exactly is needed, but even these plans should be used with caution.

Pros of Prepay:

-Controlled Spending for Teens

Prepaid plans are great for teens. The minutes are controlled, and if they over use them, they are left without their phone until the next refill. Texting and mobile web services are also deducted fom the pre-set funds available, which makes teens realize that the tempting features can add up if abused, resulting in their phone simply being a paperweight until they can add more minutes. However, this also means that emergency calls to parents are unavailable. Most cells do still offer 911 even with no minutes on the phone, but if a call is not of that grade an emergency, they have no way to contact you.

-No Credit Check

This is a big factor for a number of people. Prepay phones require no credit checks: simply enough money to purchase the initial phone and the minutes to keep it running. This means that even the teenager with a paper route can get themselves a cell phone.

Of course, with every pro comes a con. There's always an opposite arguement, and with pre-paid phones, that's no different.

Cons of Prepay:

-No Upgrades

Contract Plan Phones allow you to upgrade your phone every few years without an added fee, simply agreeing to continue using the carrier for two more years. Prepay phones do not allow this. If you want a new phone, you'll have to go buy one- and lose any unused funds left on the previous phone.

-Is It Really Cheaper?

Paying weekly to update your prepay phone's available funds can seem like it's keeping your bill at a lower rate. However, after a little investigating, you can sometimes find that a contract plan might actually be better off for your bank account in the long run! For example: spending $20 a week per phone, a couple is spending $160 a month to keep their prepay phones active. The two use both texting and mobile web frequently, and find that they are running out of available funds before their next refill date. After going online to a contract phone carrier's website, they find they can get unlimited text and mobile web on a plan and spend less than $120 a month.

So is prepay the better option for you? It all depends on your needs. In either case, whether a prepay or contract phone, there is money involved; money you've worked hard to earn. Be sure to look into your own cell phone needs before purchasing any type of phone, so you can be certain you're getting the best deal for your money.

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