Pay As You Go Prepaid Cell Phones For Kids Compared

Pay as you go cell phones have taken the markets by storm over the last few years, but are they really a good deal? Depending on your intended usage, a prepaid cell phone may be the perfect solution.

Go over the pros and cons of owning a pay as you go phone to determine whether you should purchase one.

Pros

Low Initial Cost – One of the best reasons to purchase a pay as you go cell phone, and plan, is because it has a low initial cost. When you try to sign a contract with a major phone company you will usually be required to put down a deposit. Depending on your credit, the deposit can range from $100 all the way up to $1000 in some cases. In most areas you are able to get into a prepaid cell phone plan for less than $100.

No Monthly Contract – There are months when your bills and other expenses stack up, forcing you to manage your money a bit differently. With a monthly contract, you are going to be forced to pay a minimum balance, whereas with a prepaid plan you can simply purchase a smaller amount of minutes, or leave the phone turned off until you really need to use it.

Increased Personal Security and Privacy – Having a contract through a large cell phone provider will usually mean that your personal information is tied to the phone number. This simply means that your first and last name will show up when you call people with caller-id enabled phones.

Prepaid cell phone plans do not display your personal information over caller identification enabled phones. You can also use pay as you go cell phones  to screen phone calls from your house. When you would rather people not have your home telephone number, you can give them access to your prepaid phone.

Cons

Can Get Very Expensive – Depending on the type of pay as you go cell phone plan you go with, your costs can quickly add up. One of the best examples are plans that allow you to pay by the minute, rather than the month. Often times, you will be charged between $0.25 and $0.35 per minute of phone usage. If you were to use 1500 minutes per month, your monthly plan would average $500 per month.

No Insurance Available – The phones that you get through most prepaid cell phone providers are going to be cheaply priced and built. This means that you may end up breaking the phone and being forced to replace it out of your own pocket. Having a lack of insurance with cheaply built phones could quickly add up if you do not take care of the units properly.