If you have multiple people under your roof who are all using cell phones, you may quickly be accruing some hefty phone bills. Switching your family over to prepaid phones might seem like more hassle than it’s worth, but it’s a simple process and will make a substantial impact on reducing your costs. To help you cut back on your monthly cell phone costs, let’s look at the five benefits of switching your family over to prepaid phones.
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1. Saving Money
Phone companies that offer contracts usually charge a hefty amount for minimal coverage and minutes each month. If you don’t use your phone much, then this can be a big waste of money. Instead, a prepaid phone is loaded with minutes only when it is necessary. You decide how much you want to load onto your phone and how often, allowing you to have better control over your budget.
2. Monitoring Usage
If you want to keep a close eye on how much your kids are using their phones, prepaid varieties are ideal. You can tell your child that they have so many minutes for the month. If they don’t budget their minutes accordingly, they’ll run out and lose use of their phone until the next time you load it with minutes. Not only does this allow you to monitor how much they’re on their phone, but it also teaches your child responsibility.
3. Skipping Credit Checks
If you sign up for a cell phone contract, you usually must have a credit check performed. This can hurt your credit score which might impact your financial future. Prepaid phones don’t require credit checks. For people who have poor credit scores, this is a great option.
4. Avoiding Contracts and Plans
You lose a lot of flexibility when you sign up for a cell phone plan. By agreeing to a contract for one, two, or even three years, you’re limiting yourself to other options that may be more affordable. While you can usually pay a fee to get out of the contract, this tends to be a high amount to dissuade you from doing so. You may decide that you want to remove a line from your plan or switch to a plan with lower minutes, and that may not be an option when you’re bound by a specific set of contract rules.
5. No Overage Fees
If you have a contract or cell phone plan that dictates how many minutes you are allotted each month or how much data you must work with, you may face fees or penalties if you go over that amount. These fees can quickly add up. In many cases, it’s your responsibility to monitor your usage. You may not be alerted that you’ve gone over. You’re not aware of the situation until you receive your bill and see that there are additional charges to pay.
Now is the perfect time to switch your family to prepaid phones. You’ll be able to save money while also taking advantage of the flexibility of this option. There are several companies that provide prepaid phone options.