| In today's world we cannot go without cell phones | | | | money, then a pay as you go plan can be great for |
| any more. Its become an essential part of life and | | | | you. |
| most people don't even know how to use a "normal | | | | One of the biggest disadvantages of a contract is |
| phone" any more. When it comes to getting a cell, | | | | that is binds you for up to 2 years. This is a big |
| the 2 main choices you have is prepay or contract. | | | | financial commitment and if you get to a point where |
| Contracts are the most popular choice, but its often | | | | you have to get out, you will pay a hefty penalty |
| like that for all the wrong reasons. | | | | which is as much as 10% of the outstanding |
| Contract phones are more expensive but the reason | | | | payments on your contract. There is almost no |
| why most people get roped in is because of all the | | | | flexibility while a prepay has all the flexibility in the |
| extras they throw in. Free text messages, free ring | | | | world. |
| tones and free "whatever's" often swing us and get | | | | When it comes to a phone, contracts often swing |
| us excited about the contract. In reality, you pay for | | | | people by offering the latest and greatest phones |
| all those things. When you get a prepay phone, you | | | | "free" or for a very small monthly payment. Once |
| can actually cut all those extras out and save a small | | | | again, none of it is really free and you will end up |
| fortune. In reality, most people never use all the | | | | paying for it in some way or another. Even though |
| extras that contract offer. | | | | you have to buy your own phone with a prepay, the |
| Prepaid cell phones are great for managing expenses. | | | | saving will be passed down to you down the line. |
| A contract is like a credit card. You have no real | | | | Phones are expensive and if you have to buy it |
| sense of what you are spending. With a pay as you | | | | outright it can be a bit of an investment, but in the |
| go plan you actually pay before you spend which is a | | | | long run you will still save. The good thing is that if |
| very wise way to manage your money. If you are | | | | you have to you can even buy a used phone or get |
| the type of person that's not great with managing | | | | one from a friend until you can afford a new one. |