It is estimated that there will be more cell phones than people on the planet Earth by 2020. That is a lot of cell phones, and that is a lot of contracts for service as well. There are a lot of problems with contracts that many consumers are starting to realize. A two-year agreement means that you are essentially stuck with the same phone for two years, unless you want to pay for your own upgrade and possibly an upgrade to your service as well. When you use a pre-paid cell phone, you can change phones whenever you want and you never have to pay an extra fee.
If you want to change phones when you are on a contract and the new phone requires a new agreement, then you will be forced to pay hundreds of dollars in fees and penalties to cancel out the old contract before starting a new one. With a pre-paid cell phone, you can upgrade to a new phone without any penalties at all. When you use a pre-paid cell phone, you decide what kind of phone you have and what kind of services you will enjoy.
A two-year contract means that you will pay the same base charges every month. If your agreement includes 5,000 minutes per month and you only use 500, then you are still going to pay for those 5,000 minutes. If you do not use them, then you lose them. With a pre-paid cell phone, you only pay for the service that you use. If you get a pre-paid cell phone and run out of minutes, then all you need to do is pay for more. When the end of the month rolls around and you still have minutes left over, then you can just carry those minutes over to the next month and not buy any more time.
When you have a pre-paid cell phone, you decide when you pay your bill. If your financial situation gets a little bleak and you decide that you cannot pay a cell phone bill, then you would use up the minutes you have and add more when you can. If you have a two-year contract and you cannot pay your monthly bill, then you are headed for collections and possible legal proceedings. A pre-paid cell phone is definitely more conducive to these trying economic times.
The next time that you get your statement from your cellular provider, compare your real usage with the rates you are paying. If you are paying for thousands of minutes you are not using, then you are wasting your money. If you cannot change to a new plan without having to pay hundreds of dollars in fees, then you are wasting even more money.
As your agreement comes to an end, take a look at what a pre-paid phone can do for you. It will save you money and allow you to choose when you pay your bill and how much you pay. That kind of power can be extremely helpful during tough economic times.