In challenging times, we are always looking for ways to reduce our expenses. But often, the last place we think about cutting costs is the best place to save some money. One example of this is your monthly cell phone plan — a great opportunity to reduce spending without significantly changing your lifestyle.
Most people would never consider adjusting their cell phone plan. They figure in this day and age, cell phones are a necessity. However, adjusting your plan does not mean you are cutting out cell phones entirely. Instead, you are trying to optimize your plan for your current level of consumption. Many consumers pay for far more minutes than they actually use. By switching to a prepaid cell phone, many users could save up to several hundred dollars per year.
It’s actually very simple. Instead of paying a monthly fee, you simply buy a fixed number of minutes for the year. For example, TracFone, a major provider of prepaid minutes, offers a package of 400 minutes for $99. These minutes can be used anytime during the one-year period. Depending on which phone you purchase, you could receive bonus minutes as part of the plan.
Using prepaid cell phone is a great way for infrequent cell phone users to cut out a monthly expense. Many mainstream plans cost between $50 and $100 per month, or between $600 and $1,200 per year. Why pay for all of these minutes if you are not going to use them? With a prepaid plan, you are only paying for what you consume, and if you run out of minutes, you are always free to buy more. Buying additional minutes is very easy and can be done online or from the cell phone itself
Prepaid phones also reduce hassle. You don’t need to worry about excessive taxes, fees, or late charges. You don’t have to worry about the cell phone contract or early termination fee.
Most phones and plans can be purchased online in less than 20 minutes through reputable companies that safely and securely store your personal information. The quality of service is just as good, and most plans will allow you to keep your old cell phone number.
Although prepaid cell phones can save money, they are not for everyone. For those who use cell phones frequently (more than 400 minutes per month), a high-use or unlimited plan might be the way to go. But average American uses fewer than 300 minutes per month, and many use significantly less. If you are one of those consumers, the prepaid option might be an excellent choice to explore.