Prepaid Phone Plans vs. Monthly Phone Plans

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Difference between Prepaid Phone Plan and Monthly Phone Plan

Amongst many other options while considering to a buy a phone, the question always arises whether to get a contract plan or a prepaid one. Since the market keeps on growing, the variety presented in huge and one can go with the ease of deciding which package suits them the best. However, a few factors lie when you are making this choice and it is best to review them before hand.

Prepaid Phone Plan
Monthly Phone Plan

The Advantages

The prepaid plan lets you make the payments while you are using it. You do not need to worry about the hassle of going through credit checks by companies before making an account. In addition, you shouldn't be worrying about the bill either and have exact knowledge of the money you are spending. On the other hand, a contract binds you in an agreement which lasts from a year to two years. The advantages associated with this are that you get phones for free or get massive discounts because of your contract. Also, you can often make free calls to your Family Tree which means that no charges are applied to special numbers, according to your choice of plans.


When you are dealing with prepaid service phone, you have to be aware of the fact that every call that you make or message that you send will be charged on a minute basis. This means you have a price to pay per SMS and per call. You are limited to the phone that you purchase and this means that you are most likely to be deprived of privileges of Internet or maybe even a camera. In addition, the roaming facilities are extremely limited as well. Whereas, the contract comes with the disadvantages of going through the hassle of having checked for credit and in the worst cases, you may even have to pay a certain amount due if you have unfavorable credit. Even if you break the contract, you have to pay the termination penalty which may be more that initial two hundred dollars.

Your Decision

It depends on the needs of every individual as to what they can afford or which package suits them better. Those who may fear the bill being overdrawn can always stick to prepaid plans and those who want a secure deal can turn to a contract plan. The decision solely relies on the person in concern to what plan he or she should opt for.


Choosing the perfect package plan for yourself depends on what type of calls you need to make. These may include business related calls or long lasting hours with family and friends. It depends on what you can afford that matter in the end. The comparison ends with a tie because:

  • Advantages and disadvantages come with every product but it depends on what extent of pros and cons of this a person can afford to deal with.
  • What your payment limit can allow you to afford. This is an important factor since you should be able to pay off whatever money is charged on you.

Which one is a better value?
  • Prepaid Phone Plan
  • Monthly Phone Plan

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