One of the main recurring expenses faced by modern families is the cell phone plan. By the time you pay for talk, text, and data, you could easily end up paying $100 a month or more for your cell phone plan — and with a contract you are locked into that price for two years.
Over time, that starts to add up. The good news is that many companies are now offering cell phone plans that don’t require you to sign a contract. You can get a plan for as little as $10 to $30 a month, and an unlimited talk, text, and data plan for as little as $50 or $60 a month. This is different from a prepaid cell phone. With the prepaid phone, you purchase a set number of minutes ahead of time. When you run out of minutes, you buy more. A no contract cell phone plan charges you a monthly fee for a certain number of minutes, or for unlimited minutes (and text and data, if you choose). However, you don’t have to keep renewing your monthly service if you don’t want to, and you don’t have to worry about fees for terminating your contract.
A no contract cell phone plan can be a good way to get the cell phone service you want, but at half the price. However, as with all financial decisions, your lower monthly payment comes with a trade-off.
(click here to continue reading…)