Even way back in 2009, two years after the initial boom in the app market born from the smartphone revolution, people were giving prepaid phones more than passing consideration. As discussed in this article about the decline in big contract phone plans, prepaid phones just made more sense than investing in a very expensive phone and huge monthly payment. As smartphones have moved into their second decade of existence, now more than ever before people are switching to prepaid plans.
The United States government has recognized the importance of having a prepaid smartphone, too. The government’s Lifeline program is a mission to give low income customers prepaid smartphones free of charge. Why? Because they’re money savers and low income Americans need all the ways they can get to save money. Here is why the government itself has acknowledged that prepaid phones are money savers.
Ways to save with a prepaid phone
1. One low initial payment: When you pay for a contractual smartphone, you’re paying for top of the line phones. They can easily run upwards of $900 to get your hands on the latest models. In contrast, Prepaid phones have a very low up-front charge, usually between $9.99 and $79.99. Once it’s paid, it’s paid and you never have to pay a dime on the phone again.
2. Lower monthly payment on a plan: Carriers have recognized that people who buy prepaid phones need to budget on their monthly phone bill. To accommodate this need, they’ve developed a flat rate monthly price for unlimited talk and text. If customers need data, they’ll pay a bit more but it’s included in a reasonably priced unlimited package that doesn’t include hefty overcharges for use. You pay the low monthly payment and you have a phone for the entire month. It’s drastically less than you’ll typically pay for contract phones.
3. No accidental charges: Millions of people who’ve owned contract phones know the shock that can arise from looking at a phone bill that is hundreds of dollars over the initial price. These fees and charges for overuse can be stressful. With a prepaid phone, you pay your monthly payment and you are restricted to the use you’ve paid for. There are no surprises on a phone bill that can set you back months on your finances.
4. No fees for getting out of a contract: Contract phones can quickly amass charges that make it impossible to keep up with a phone bill. When this happens, you lose your phone. With a prepaid phone, you’re not going to be charged when you don’t pay your bill. It’s a matter of paying it when you can.
The prepaid phone revolution continues today as people have realized that contracts can quickly ruin household finances. Buying a prepaid phone just makes good sense.