Prepaid Cell Phone Plans

When I made my first post about cell phone plans, I made no distinction between prepaid cell phone plans and postpaid contract plans. As wireless calling plans encompass these and other types of plans, I see no need to really make a distinction when speaking broadly. However, I think most people think of contract plans when they think of cell phone plans, not prepaid cellular.

There are good reasons for this. Most obviously, traditionally prepaid phones did not really have "plans" per se. You bought a phone ( usually a discontinued "regular" cell phone that was given away for a penny with a contract) and you bought "minutes," usually in the form of a card with a stored value. For example you might buy a Nokia somethingorother and then a $20 card for minutes on... Virgin Mobile. Minutes ( and later texts) had a set cost. You used up your account balance, and then bought a new card when you could afford one. Speaking of affordable, prepaid phones were often the last resort for consumers who couldn't afford a cell phone contract or couldn't qualify for the credit check.

These days prepaid providers actually do have real prepaid cell phone plans. With these prepaid plans, you get a similar monthly rate and allowance as traditional plans, but there is no contract or financial ramifications for stopping your service. You might not get as many minutes or features, as that's a trade-off for not committing, but the plans are very competitive.
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