Many people are having a very hard time just trying to get by. Steady jobs and big paychecks have seemed to disappear. But your bills certainly have not disappeared. There are many ways for people to cut back on the money that goes out as the amount of money that comes in seems to dwindle down.

One of the best ways to cut back on your monthly bills is to sign up for a prepaid cell phone. Prepaid phones are popular for several reasons and for these reasons they have become more and more popular over the past year.

One reason prepaid offers are an attractive option is that in order to purchase one, you do not have to sign a contract. This is a big deal for a lot of people. Since you do not have to sign a contract, there are no termination fees that you have to pay in order to stop using the service of the company. These fees that you often have to pay are really unfair and can be in the hundreds of dollars. This is one big reason many people are going with prepaid cell phone offers.

For prepaid models, you never have to undergo a credit check. There is no contract involved and no necessary monthly payment, so there is no credit involved. Many people do not have the minimum credit necessary to get a phone with some of the larger contract companies. But many of the large wireless providers are offering prepaid options.

Another reason is that you do not have to pay for the same minutes every single month. You pay as you go, which means you only pay for the minutes that you use. There are restrictions, limits, time constraints, and expiration dates on minutes for prepaid phones, but if you find the right plan that works for you, then you will most likely save money.

It is not just companies like Tracfone, Cricket (Leap Wireless), Boost Mobile, and MetroPCS that offer prepaid cell phones. It is companies like Verizon wireless and T-Mobile prepaid. T-Mobile is actually quite well known for its prepaid service, but Verizon is one of the biggest advertisers for contract based monthly plans.

There is a definite shift toward prepaid phones as the consumer becomes more savvy and realizes that there are other options out there. The truth is that many people do not use all of their minutes every month, which means they overpay for their cell phone bills. Prepaid gives you more control over the minutes you use and the minutes you need to pay for each month.

A good rule of thumb is if you use 300 minutes or less, then you may be better off with prepaid. If you are a very heavy cell phone user, you talk to your friends a lot, and like to text, then a contract plan is most likely better. Text messages add up very quickly because you not only have to pay to send a text, you pay when you receive one.

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Chris runs a website about T-Mobile prepaid phones. Follow current T-Mobile prepaid phone news at his site.

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