Reasons to Use Prepaid

The phone choices available at the moment can seem overwhelming and confusing when attempting to decide which mobile is perfect for you. One of your first choices being between prepaid or mobile phone plans.

This choice between using a prepaid mobile phone and choosing a mobile phone plan is certainly 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 monetary budget or for people that are fixed to a specific spending level such as with work phones or phones marketed for teenagers. In a standard prepaid mobile phone kit you would get a mobile number, access to the network and a certain amount of "credit" to use. This credit is the basis for the prepaid mobile industry as when you run out of credit, it's easy to buy some more credit and keep using your phone. This is a key benefit, especially in light of the current global financial crisis which has resulted in many people cutting undue expenses.

This PAYG is opposed to the 12 to 24 month contracts that are offered with phone plans which work on a fixed monthly amount that has to be paid which entitles the user to a certain amount of mobile 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.

The major benefit of the prepaid mobiles is that you can control your spending on your bill without extra fees, such as late payment fees and monthly account charges. Understanding definitively how much you will spend each month makes this a popular choice.

Prepaid mobiles come with high value costs for both texts and calls with some offering free calls and other bonuses. This can be an easy 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 run out, you can still receive calls and dial emergency services.

It is important to note that credit does have an expiry date , sometimes a month, sometimes six months depending the carrier you are with. For example, most prepaid mobiles 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.

One disadvantage of prepaid mobile phones is that most of the time international roaming may not be available. This means that overseas use is not an available option. One way to get around this is to buy an overseas SIM card that will allow you to make calls whilst overseas.

The decision between a prepaid mobile and a mobile plan should ultimately come down to what your personal calling habits are like. If you make a high number of calls and texts 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.