A prepaid plan is the ultimate way to control your monthly mobile phone bill. If you’ve ever been caught out with by a huge phone bill and you want to make sure it never happens again, prepaid is the perfect solution .
A prepaid plan is also a great idea for young kids. Teaching youngsters the value of money through a prepaid plan with a finite limit of credit is a great idea. They get a limited number of calls and SMS to make to stay in touch with you and their friends, plus some data to use browsing the web and staying up to date on social media.
Many people also find prepaid plans are a great tool for older people who may not use a mobile phone often. There are numerous plans which include a long expiry period: 90 to 365 days. Pop a SIM card into a cheap phone and it is available when it is needed, but it won’t need to be recharged every month.
The mobile market is split into two broad categories: prepaid and postpaid. The core difference between the two is in the naming; prepaid plans are bought in advance of their use, postpaid plans are paid for at the end of a set period, usually a month.
Practically, the difference is that prepaid plans have a hard limit. You get a set amount of credit (calls, SMS and data) and when you’ve used this you need to recharge your account to get more. Postpaid plans can be used before the agreed limits in the plan, but you will pay extra for this excess usage. For example, if you have used all the included data in your plan for the month your carrier might automatically top-up for account for a set fee.
Both account types serve a purpose and should be part of your consideration. If you want an always-on style of service you should get a postpaid plan. If you want total control over how much you spend each month you should consider going prepaid.
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