Reasons to Use Prepaid

The phone choices on the market today can seem overwhelming and confusing when struggling to decide which phone is the right choice for you. Arguably the most important decision being between prepaid or mobile phone plans.

This choice between buying a prepaid mobile and selecting a mobile phone plan is obviously a matter of preference for the user, but there are a number of things to consider before you decide either way.

Prepaid mobiles are a pay-as-you-go system that are shown as ideal for people who either are on a strict fiscal budget or for those that are fixed to a certain spending limit such as with phones for work use and teenagers who own mobiles. In a standard prepaid mobile phone kit you would receive your phone number, network access and a specific amount of credit for the phone. This credit is the basis for the prepaid industry as when you run out of credit, it's easy to buy some more credit and keep using your phone.

This PAYG is opposed to the 12 to 24 months contracts that are provided with mobile phone plans which work on a fixed monthly amount that must be paid which allows the user to a certain amount of mobile phone usage. The cost of the handset may also be included in the monthly fee and there are exit fees attached when wanting to leave your mobile plan early.

One main benefit of prepaid is that you can control your expenditure on your mobile bill without extra fees, such as late payment fees and monthly account charges.

Prepaid mobiles come with high value costs for both texts and calls with some providing free calls and other incentives. This can be an ideal choice for those who don't make a lot of phones calls or simply have a "in case of emergency" phone. Even if your credit has expired, you can still receive calls and texts and dial emergency services.

It is critical to note that credit does have an expiry date , sometimes a month, sometimes six months depending on the carrier. For example, most prepaid mobile phones have a starter credit package of approx. the $30 level, that entitles the user to around $200 worth of calls and texts, which would expire within a month of the purchase date.

The decision between a prepaid phone and a phone plan should ultimately come down to what your personal calling habits are like. If you make a large number of calls and use your phone a great deal while also enjoying additional features, then there are a number of plans available that cater for such users.