Why You Should Consider Prepaid Phones in 2021
When it comes to cell phones, it’s either prepaid or contract. Increasingly for Americans, it’s prepaid. The massive rise is because more people are realizing the numerous benefits. People are tired of cellular contracts, with their surprise overage charges and hefty termination fees. Here are a few reasons why you should consider a prepaid phone.
With a cell phone bill, it really pays off to be thrifty. It’s an essential service and you have to pay it every month. Prepaid plans are significantly cheaper than contract phones. They cost around $40 a month and usually have unlimited voice, text, and data. Contract phones are 50% more expensive. Choosing prepaid will save you a great deal of money in the long run.
Not get tied to any carrier.
Cell phone contracts last 2 years. Either that or you have to pay a termination fee of $150 to $200. Why should you care? Differences in reception for one.
Different wireless carriers have different coverage areas due to their tower placements. A cell phone is close to useless if it doesn’t get reception (it’s basically a brick!). Imagine if you moved and your cell phone didn’t get reception in your new apartment. If you had a contract, you’d have to pay a hefty termination fee to switch or you’d be stuck in your situation. With a prepaid, you could simply buy a new phone.
No income or credit checks
Cellphone contracts are expensive and thus the carriers put customers through extensive income and credit checks. Prepaid phones on the other hand are quite lenient with prospective customers. So if you have bad credit or low income, you’ll still be accepted with a prepaid company.
Prepaid usage is highest amongst the income group of under $35,000. This makes sense, as this population would have difficulty getting approved for contract phones.
No overage charges
One of the worst things about having a contract phone is dealing with overage charges. The situation is all too familiar. You get your monthly bill in the mail and there are huge fees for going over your voice limit. With prepaid, on the other hand, everything is crystal clear. You get what you prepaid for. If you run out of minutes, you’ll need to load more. It’s as simple as that. Most importantly, there are no surprise charges.
Sometimes it’s useful to have a “burner phone”. Some people think it’s only for sketchy things but there are a number of practical use cases for normal people. For example, you can use it for online dating so that a stalker doesn’t get your real phone number. Ditto for craigslist. Every time you give out your personal phone number, you’re exposing yourself to the possibility of unwanted phone calls from strangers. Using a burner phone takes care of that.
Parents are increasingly giving cell phones to young children. Half of those between the ages of 8 and 12 have them. How responsible were you when you were in elementary school? If they’re still studying multiplication tables, it’s unlikely they’re going to be vigilant about their voice allowance. Overage charges are almost an inevitability.
It’s a good idea to put them on prepaid phones. It’s easier to monitor their usage and there are no surprise charges. Even better, your children learn to budget their time and learn how to plan ahead.
Prepaid phones are becoming more popular. There are numerous advantages over contract phones. Perhaps you should consider one yourself.