Although multimedia smartphones can make
life far more convenient, they can come with a hefty price tag. Many major
service providers sweeten the pot of signing up for an expensive contract by
offering a free or reduced-price smartphone. You may benefit from receiving
this gift up front, but then you are locked into a phone contract for two
years. These contracts often offer an overabundance of minutes and texts, but
then charge premium rates for services like international phone calls. One way
around this is to consider purchasing a prepaid phone, or signing up for a pay
as you go contract. This allows you to customize your phone usage and can save
you a surprising amount of money.
Doaway
with Excess Minutes
One of the supposed benefits of a
monthly phone contract is that you receive a high number of mobile minutes to
use, all included in your fee. The truth of the matter is, most of us don't
even use all of our airtime each month. Many people now choose to communicate
via texting or emailing instead of phone calls, to save time. As a result, all
of those minutes are being paid for but never used! By choosing a prepaid phone
instead, you use exactly what you pay for and nothing more. If you're wondering
just how many minutes you use each month, take a closer look at your phone
statements. You may be surprised to learn that you're only using half of your
monthly allowance, yet still paying full price.
Lower
International Rates
Another major reason to consider going
prepaid is that you can benefit from lower rates overseas. Rates will vary, but
you can make cheapcalls to Pakistan from Lebara mobile
or other prepaid providers in comparison to the rates you would normally pay.
It's a good idea to shop around to see what types of international rates are
offered, as these will vary even among prepaid phone services. You could call India with Lebara from the UK for 1p per
minute, but a prepaid phone from Vodafone will charge you a hefty 25p per
minute simply for local calls. It's important to compare these tariffs
carefully if you want to save money.
How
Prepaid Works
In most cases, with prepaid services you
don't have to sign any contract. You are required to pay the full price for any
phone you decide to purchase, and a flat fee for each month's service. In other
cases, you can purchase prepaid SIM cards to use in your existing phone or
simply pay as you go without the flat service fee. The major benefit of pay as
you go service is that you are never surprised with a high phone bill at the
end of the month. You can plan your phone calls and budget for only the minutes
you need. If you are nearing the end of your existing phone contract and
already have a smart phone, you could easily switch to pay as you go without
any added fees.
It's worth looking at alternatives to
the phone contract to see if this is a viable option for you. Particularly for
those who make regular calls overseas, prepaid phones can be a great way to
save money.
Photo credits: marin of FreeDigitalPhotos.Net
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