Pay As You Go Cell Phones Could Save You Money!

In Europe, it is more common for people to have a pay as you go cell phone plan rather than a monthly contract. Long term phone contracts are currently the norm in the US. But a revolution is underway.

People are starting to realise that they have other options. They are getting fed up paying charges on a contract regardless of whether they use the cell phone. Mobile phone providers often impose large penalties for cancelling your cell phone contract. It is easy to see why many are becoming disillusioned.

Are you really better off on a pay as you go cell phone plan? Some, perhaps the more cynical, people cannot believe that the mobile phone providers would give you a similar package but at a lower cost. They are convinced there must be a catch.

Our research has shown that a large number of users would be better off on a prepaid arrangement rather than those on a contract, once the service charges are taken into account. If you are a light mobile phone user i.e. you don’t spend hours on the phone every month then you are most likely to benefit from switching plans. Business people and those who use a lot of call time would typically save money staying on the contract arrangements.

The other benefits of the pay as you go plan are the fact that applicants are obliged to undergo a credit check. This could be a huge benefit as many of us are finding that our credit ratings are now less than perfect!

Why would companies trust you without doing a credit check? You are helping them with their cash flow by paying in advance for the minutes you may or may not use. In this economic climate, it is a huge cost saver for the mobile phone providers.

More people are experiencing financial difficulties and are failing to honour their contract payments. Mobile phone companies are spending time and money trying to recover outstanding charges. In a lot of cases, they are having to write off debts as there is no hope of retrieving their money.

When you pay in advance, there is no risk to the provider. In fact under some contracts, there is a huge benefit as you may actually pay for something you don’t use. What do I mean by that?

Some providers will not allow you to roll over unused minutes to the next month, so you may end up paying for call time you haven’t used.It is imperative that you do your research properly.

So what should you look for when choosing a new pay as you go cell phone plan?

* The ability to roll over unused minutes to the next month or even the year

* Call charges.

* Look for companies that reward customer loyalty with discounts or bonus call minutes. Some of the larger providers will give discounts if you purchase your minutes on-line.

Mobile phones are a hugely competitive business with various providers undercutting each other in order to gain market share. Use this to your advantage to secure the best pay as you go cell phone plan possible.