How to Save Money With a Prepaid Cell Phone

Using a prepaid cell phone is an excellent way to save money, particularly if wireless providers make getting service difficult due to your credit history. A pay-as-you-go cell phone affords you every freedom of wireless communications without tying yourself to long-term service contracts.

Instructions

Difficulty: Moderately Easy

1. Determine how often you'll use a prepaid cell phone. If you anticipate only occasional usage, consider signing up for a plan that charges a low monthly access fee and by-the-minute airtime.
2. Compare the different plans offered by the various prepaid cell phone providers carefully. Take the cost of the phone into consideration when tallying up your bottom-line start-up costs. You can save money by choosing the least expensive cell phone, especially if you're going to be using the cell phone only for emergency situations.
3. Compare the cost of signing up for an annual plan with the cost of a prepaid plan, using your anticipated phone usage as a guideline. Factor any early termination fees, deposit and activation costs into the monthly cost of regular service.
4. See if you can add a prepaid cell phone plan to a cell phone you already own. Some providers offer this service. With this strategy, you can bypass the cost of purchasing a new phone altogether.
5. Opt out of additional features, like access to directory assistance, picture messaging, text messaging, voice mail and call waiting, unless you really need them. The best way to save money with a prepaid cell phone plan is to use it only when absolutely necessary. Continue to use your land line as your primary phone.
6. Don't buy an additional month's service if you don't need it. Just keep the phone, and purchase refill minutes at a later time. If you don't continue, some phone companies will purchase your old phone, or you can give it to charity.

Tips & Warnings

• Some providers allow you to convert your old phone into a prepaid phone using one of their plans. Ask your vendor for details. This move could save you the cost of a new cell phone.
• Know the fees regarding roaming charges, long-distance and international calling. Try to make long-distance calls from your land line as much as possible for access to lower rates.

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