While in the United States regular tariff plans on the Cell Phones are the norm, plans that let you «pay as you go» and prepaid plans are popular throughout Europe. These types of plans have grown in popularity in the US in recent years.

Freedom from contracts and complexity

The appeal of being freed from a long-term contract and not having to worry about early termination is attractive enough to some people. The flexibility and freedom to change devices and usage habits while paying only for the service you actually use is very attractive.

While many contract plans allow for changing habits, such as «flexible» plans and «rollover» features, like being able to use 100 minutes one month and 1,000 the next, it’s pay as you focus on the person.

What’s more, these extra features in contract plans inevitably bring about a lot of qualifications, limitations, and a total of fine print that a free «pay as you go» user often doesn’t have the time or patience to go over to figure out if a contract plan is actually a good deal. .

Types of mobile phone plans

There was a time when your mobile phone was technologically linked to your carrier. For example, when the iPhone was first released, it was only available on the AT&T service; for example, you couldn’t take a phone from AT&T and switch it to Verizon — at least not without much difficulty. This led to the «jailbreak» of phones. Eventually, after new laws were passed, the companies ended the «lockdown» mobile phones giving users more freedom. This makes it easier to consider alternative plan options.

There are four main types mobile phone service plans :

  • Month by month
  • Postpaid or prepaid
  • Contract (usually two years)
  • Payment plans, phone cost broken down by installments with the possibility of early exchange

Pay-as-you-go plans

If you know exactly how much you’ll be using your phone and in what way, pay-as-you-go can be an attractive option. It can also be a little tricky, as pay-as-you-go plans and how they are charged can vary significantly from provider to provider. At the time of buying best plan you will need to not only carefully examine your usage habits, but pay-as-you-go plan details to make sure it matches your usage habits.

Sticking to your pay-as-you-go parameters and habits can net you some savings, but going beyond those amounts quickly adds to unplanned expenses.

Contract plans

The biggest attraction for contract plans is the subsidized cost of getting a new phone model. For example, new smartphone upper class quite expensive if you buy it outright, but when you sign a two-year contract, the cost of the phone is subsidized by the provider, which greatly reduces the initial cost.

The downsides are the aforementioned restrictions on changing carriers due to prohibitive early termination fees, as well as «activation fees» that are often charged when setting up a service. The savings you received from the purchase price of the phone are now reduced.

Month-to-month and payment plans

These two plan options are more recent offerings in the mobile phone world.

The payment plans are for those who want the latest devices, want to change them regularly, are not interested in reselling their old phone, and don’t want to pay the full cost of a new phone up front. These plans often allow users to «upgrade» to newer phone models before their standard contract expires by trading in their old phone. Convenient and easy to set up, but you pay for this convenience.

Monthly plans give you the freedom to tailor your mobile plan to your needs, such as allocating data each month, while still allowing you to receive features such as unlimited text messages. The pain with the monthly plan is prepaid: you pay full price for the phone, no subsidies. However, if you can charge upfront, a month-to-month will usually save you money, but you’ll have to shop around. Major carriers like AT&T and Verizon offer monthly plans, but they usually push customers towards contract plans, so their monthly plans are often less attractive.

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