Over the past couple of years prepaid mobile plans have become more and more popular, and people have been quick to adopt them. Just a few years ago prepaid plans carried the stigma of being for the economically challenged, targeting those with bad credit and only providing bare-bones service, usually limiting the amount of talk-time per month for a low rate.
That is no longer the case; with the surging popularity of smartphones, mobile companies have begun offering prepaid plans that have many of the same features as their contract counterparts including texting, multi-media messaging, and internet data usage. So what are the advantages or disadvantages of either prepaid or contract plans?
As both plans provide the same great coverage and features, the decision between a prepaid and a contract phone will fall on how important having the latest and greatest device is to you. Mobile phone carriers sell you a phone at a highly discounted rate in exchange for a two-year contract, whereas on the prepaid option you’re paying for the phone out of pocket which might not be the best option for everyone.