When deciding what plan will fit your needs, I found that by listing what it is that you are going to use it for, and list all of what you may not be using it for will help a great deal in making that decision.

So if you find that your needs are of a limited nature, then a prepaid plan may be the way to go. Much of all prepaid plans work the same way in that you prepay for airtime up front, and when that airtime runs out, you simply buy more.

Since you're not under any contract, you can let your plan expire, and you're under no obligation such as a contract to keep you locked in.

The advantage is that you may just need the phone for a while till you set up in a new home or apartment.
You may just want it for answering the phone for an ad you put in the paper so as to not have your regular line compromised. Whatever the use, a prepaid lets you call anonymously and only for the use you've intended.

However, if you talk a lot and find yourself constantly buying more minutes, then it may be best to consider the more traditional plans offered with the contracts.
I personally do not like contracts.
If the service is bad you're just stuck with it no matter what, and if you try to duck the contract, you risk ruining your credit score.

The pros of a prepaid are several, one being you don't have the contract to deal with.
There is no penalty involved letting your prepaid expire.
If you have marginal credit, you don't have to be embarrassed about the requirements for getting a contract.
You may in many cases just write a check or plunk down the cash, pick out a phone with prepaid minutes, pay for it, and you're ready to make a call.

Make no mistake though; you'll be paying more for the convenience of a prepaid vs. a contract if you use the phone a lot more than what many would use them for.
You have to look out for other fees such as daily access fees, or if there is a time limit on when the minutes can be used.

The phones themselves are often inferior to those of the traditional contract plan phones, and if you decide to dump one and go for another, then you can't carry over the previous number to the new one, so in the end, this will be an inconvenience as you would have to keep updating your friends or clients with the new number. This means wasted minutes just calling them for the update.

With prepaid costing up to 50 cents or more a minute depending on use, there are a number of considerations to be made before just jumping into getting one. If you use you're phone very little, then it's wise to pay more for less minutes and avoid the daily access fees, this will cost you less in the long run. There are a number of catches as well, so be sure to read the fine print to avoid a nasty surprise.

There are a number of major carriers that offer prepaid deals. It's up to you to calculate the costs vs. convenience. A prepaid plan is great for getting your feet wet without committing to a contract. It's a great idea for senior citizens as it's a very basic set of features that you get.

The final choice must be made according to your total needs. If you can afford the convenience end of a prepaid, then it's the best way to go.

Learn more about this author, Richard Serra.
Click here to send this author comments or questions.

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