Prepaid Cell Phones – A quick guide

My husband and I are very budget conscious.  When I became a stay at home mom we evaluated my cell phone options and decided that a prepaid cell phone was the way to go.  Last year we spent $175 total on my cell phone.

People automatically think a few things when you have a prepaid cell first.  Here are some myths I have come across:

People with prepaid cell phones:
1) Are poor and have bad credit
2) Change their cell phone number on a monthly basis
3) Can’t get voice mail, text, or use the internet on their phone

I would just like to say that all of these perceptions are absolutely false.  I talk, I text, I receive voicemails, I have had the same number for 3+ years, and I even have (free) internet!

My cell phone provider is Page Plus Cellular.  Page Plus uses Verizon’s network.  I have no commitment or contract with my phone (thus no fees to pay to break said commitment or contract).  I pay for what I use – which includes texting and talking.  We buy prepaid cards and roll them every 120 days.  In fact, Page Plus calls my home phone with reminders, which is always incredibly nice!  When I run out of minutes I simply buy more minutes – generally  at a reduced rate.  Last year we bought one $75 card, and then rolled the other months (the end of the 120 period) with smaller cards.

Not making sense?  Let’s try this  – it is January 1st and you decide you want a prepaid cell phone.  You buy a phone (from Target, Walmart, Craigslist, or Ebay) or find an old phone that you already have which works on your prepaid carrier’s network.  You buy a 1,000 minute voice card for $50.

Scenario A: Let’s say 119 days have passed and you have a balance of $3.64 on your phone (when you place an outgoing call you are told how much money you have left).  You buy another $50/1,000 minute card and you now have $53.64 on your account.  You rolled your money and feel fabulous about doing so.

Scenario B: Let’s say 119 days have passed and you have a balance of $3.64 on your phone.  You choose to do nothing and day 121 passes.  You lose that $3.64, but you are out nothing else (i.e. cancellation fee).

Scenario C: Let’s say 75 days have passed and you used your entire 1,000 minutes.  You buy another card and your 120 days starts over.

Pretty simple, right?  I think so! But with most things, I could not have figured this out without my husband.  If you have questions, let me know and I will do my best to help you!

Disclaimer: All opinions expressed in this entry are my own.  Page Plus Cellular had nothing to do with this entry other than be a point of reference.