Prepaid Mobile Phone Plans Explained

The mobile choices available at the moment can seem overwhelming and confusing when attempting to decide which mobile is the best choice for you. One of the first decisions being between prepaid or mobile phone plans.

This decision between buying a prepaid phone and choosing a mobile phone plan is obviously a matter of preference for the user, but there are a number of things to consider before you decide either way.

Prepaid mobiles are a pay-as-you-go system that are ideal for those who either are on a strict fiscal budget or for people that are tied to a specific spending level like with phones for work use and teenagers who own mobiles. In a normal prepaid kit you would get a mobile number, access to the network and a certain amount of "credit" to use. This credit is the basis for the prepaid industry as once this has run out or expired, it's easy to buy some more credit and keep using your phone. This is a key benefit, especially in light of the current global financial crisis which has resulted in many people cutting undue expenses.

This PAYG is as opposed to the 12 to 24 month terms that are offered with phone plans which work on a fixed monthly amount that has to be paid which allows the user to a certain amount of mobile phone usage. The cost of the handset may also be included in the monthly fee and there are exit fees attached when wanting to leave your mobile plan early.

The major benefit of the prepaid mobiles is that you can control your spending on your phone bill without any additional charges such as late bill payments or high unexpected fees. Knowing what your outlay is makes this a popular choice for work phones and teenagers.

Prepaid phones come with great value for calls and texts with some providing free calls and other bonuses. This can be an easy choice for people who don't make a lot of phones calls or simply have an "emergency phone. Even if your credit has run out, you can still receive calls and dial emergency services.

It is critical to note that credit does have an expiry date , sometimes a month, sometimes six months depending the carrier you are with. For example, most prepaid mobiles have a basic credit package of around the $30 level, which entitles the user to around $200 worth of calls, text, etc., which would expire within a month of the purchase date.

One disadvantage of prepaid mobile phones is that most of the time international roaming may not be available. This means that overseas use is not an available option. One way to get around this is to buy an overseas SIM card that will allow you to make calls whilst overseas.

The decision between a prepaid mobile phone and a phone plan should ultimately come down to what your personal calling habits are like. If you make a large number of calls and use your phone a great deal while also enjoying extra features, then there are a number of plans available that cater for such users.