Do you prefer to pay as you go or be bound by a contract?

My cell phone virgin mobile - my cell phone is a kyocera from virgin mobile
@ShellyB (5241)
United States
October 23, 2008 8:11pm CST
I found part of this article interesting and I am sharing part of it here: While monthly cell phone plans where you’re shackled to a one- or two-year service contract are the norm in the U.S., plans to pay as you go for prepaid cell phones are popular throughout Europe. That said, they’re also gaining steam in the U.S. The allure of not being bound to a long-term contract – and not having to pay the typical $150 or $200 penalty to be released if you change your mind – is attractive enough for some pay as you goers. While many contract-based plans have learned to take into account changing monthly habits (i.e. with “flexible” plans and “rollover” features), the draw to using 100 minutes in one month and 1,000 minutes the next while fairly paying for the difference is the kicker for other pay-as-you-go people. I have a prepaid cell phone plan and I am more than happy with it. So I am wondering what do most people who use mylot prefer? Prepaid, pay as you go (minute by minute) or contract?
1 person likes this
7 responses
@taripres (1499)
• United States
25 Oct 08
If pay as you go had all of the benefits as the contract, I'd rather use the prepaid plans! Contracts has the insurance for the phone and you have access to better phones! Prepay phones has to be purchased and upgrades the same! The main prepay benefit is, ur not penalized if u can't pay for the next month, which is very attractive! Taripre$
@ShellyB (5241)
• United States
25 Oct 08
That is also something that I enjoy too. and the fact that I can start my prepaid anytime I want with my cell provider. I like that too.
@taripres (1499)
• United States
22 Nov 08
Ok, I just realized another benefit of prepaid! I just had my ex drop her plan on MY contract, now I have a $200 cancellation fee - OUCH, now my phone's off also cause I don't have that, plus the bill which she shot up to $197 - so it's over, I'm pissed Taripre%
@ShellyB (5241)
• United States
26 Nov 08
Maybe you can fight this, she was not paying the bill right?
@MizzLadyB08 (1174)
• United States
25 Oct 08
I use to use prepaid phones but I got tired of putting money on them and the phones I wanted was expensive. Now I am on a family plan with my mom from T-Mobile which has a contract and I can upgrade my phone if I want to in 90 days.
@ShellyB (5241)
• United States
25 Oct 08
I know what you mean, if I go pay as you go. I would put 20 once in a while, with my prepaid plan it is very neat, even the smallest plan saves me money. And yes, there are a few cell phone selections, but at least from my cell server they are improving more and more (no blackberry or iphone I'm afraid)
@fwidman (11514)
• United States
24 Oct 08
I prefer prepaid. It's just a phone, and not a big deal to me, so I do not want to be tied down at all with a contract.
@ShellyB (5241)
• United States
24 Oct 08
I know, I think because you pay minute by minute and a text a time you are pay as you go (no cell plan, or text bundle) But I know what you mean tho.
@pehpot (4762)
• Philippines
25 Oct 08
Oh here in my country prepaid kind is widely used. well I think the reason behind this is they all prefer prepaid because it is not hard on the budget, here you can have a credit for as low as 50 US dollar cents. SO a lot here uses prepaid. I am too, I use prepaid, post paiud plans here are expensive and I know I will lose control of my usage
@ShellyB (5241)
• United States
25 Oct 08
That sounds good, I was reading prepaid is popular in europe too and it is on the rise in here (USA) too.
@Chevee (5905)
• United States
24 Oct 08
I am on a plan with a two year contract, my 2 years will be up in April 2009. I am not going to do an update so I will not be obligated for another 2 years. My first phone was a prepaid phone, I didn't like that.
@ShellyB (5241)
• United States
25 Oct 08
That is good, I have not had a contract phone, I have always had a prepaid one and my first prepaid was bad. When your contract end what does it mean?
@redhotpogo (4398)
• United States
25 Oct 08
prepaid. its nice to know that if something happens i'm not going to be forced to pay a monthly bill at the risk of ruining my credit. And today the selection and features of prepaid are the same level as contract phone plans. So why would anyone have a contract? prepaid is the way to go.
@ShellyB (5241)
• United States
25 Oct 08
Me too, that is something that I enjoy too.
@sk66rc (4250)
• United States
24 Oct 08
It all depends on usage habit. Because of my job, if I were to get pay as you go, I couldn't afford it. Even though my bill seems little higher than normal, after everything being said & done, my per minute average is cheaper than pay as you go. My typical monthly bill is around $116 a month & that's including tax & other fees that goes with the phone & it's contract. I have unlimited plan. I'm paying $99.99 for the "unlimited talking" part of the plan & also I have unlimited email access & messaging & data access for additional $19.99. Even though it's not much, I get a corporate discount for working where I do. So, sub-total comes out to $119.98, then less $18 for the discount which brings the sub-total down to $101.98. Then adding all the tax & other fees brings the bill back up to $115.64. I don't plan to get rid of my cell phone any time soon so contract doesn't really mean anything. If I really break it down, last month I used 3974 minutes & that's just talking part of the cell phone. That comes out to about 3 cents a minute. Last time I checked, prepaid phones are somewhere between 10 cents to 15 cents per minute, some places even more. So even if I went with the cheapest prepaid plan, my bill for last month would have been almost $400. That's not counting messaging. Because of work related issues, and of course bit of personal use as well, I used 2047 messages last month. I'm not sure how much prepaid services charge for the text messaging, but combined with my "talking" part of the bill, it would've been well over $400, possibly $500. Then there's internet part. All in all, if I went with prepaid & use it the way I currently do, it would be close to $600 a month if not more. What I would pay in 2 month of prepaid, I can keep my contract for a whole year. Time I would've spent running around looking for pay phone & keep feeding it quarters wouldn't be so cheap either in my case. So after all this, I'd rather be "bounded" by a contract. Besides, another year, I would complete my 2 year contract & I would be on a month to month basis with the same plan in which I can cancel it at any time.
@ShellyB (5241)
• United States
24 Oct 08
It sounds to me like you have a plan that works for you and that is what matters right? In prepaid with my cell phone server you would pay 79.99 unlimited calling and could have unlimited text messaging for 10 dollars more (unlimitated texting by itself is 19.99, that includes vam, im and pic texting too) Now where you will not save at all will be on internet surfing, and it seems that your job demands that you have it, so I will guess your best option is the one that you have right now. And I have some horror stories about pay phones but there are not enough of them where I live and when I need them. I think that 19.99 for net, texting and eamil is great. I think you made the right choice for you. (I paid right now 24.99 for 200 anytime minutes, 500 minutes for nights and weekends starting a 7 oclock and 1000 text messages for 5.00 more, in total it is 31.42 monthly but that really covers all my needs.