Help explain pre-paid phone vs a contract
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Help explain pre-paid phone vs a contract
I need to get my own phone soon once I finally quit my job and retire. I don't understand that difference. If you get pre-paid can you set it to automatically reload or do you just suddenly go dead?
Re: Help explain pre-paid phone vs a contract
The primary difference from a practical point of view is if you decide you no longer want a cell phone (or wish to go with a different provider), you can just stop reloading a pre-paid phone, whereas with a contract phone, you'll have to pay a large fee to break the contract. As for automatic reloading, that really depends on the provider and the type of prepaid plan you choose.
Re: Help explain pre-paid phone vs a contract
It is pre-paid versus post-paid.Muchtolearn wrote:I need to get my own phone soon once I finally quit my job and retire. I don't understand that difference. If you get pre-paid can you set it to automatically reload or do you just suddenly go dead?
I have always kept enough money in the accounts for both of my pre-paid phones, so I don't know what happens when you run out of money in the middle of a call. One is with Verizon and one is with T-mobile.
Since I am lazy, I buy enough so I don't have to refill it for 365 days. With Verizon and T-mobile, this amount is $100. I don't use my phones much.
Also, as for breaking a contract, it is generally for 2-years. After that, if you don't get a new phone after the 2 years, you can break the contract anytime.
Re: Help explain pre-paid phone vs a contract
There are two things to keep track of.
1) if you use lots of minutes, you want to pay attention to when you are about to run out, say when you only have 10 minutes left.
2) if you use very few minutes, you want to keep track of when your minutes expire.
I am in the second category, and the cell phone company sends me text messages as the expiration date approaches. I bought 1000 minutes for $100 when I first started, and those minutes were good for one year. My subsequent purchases have been smaller, but they also were good for one year. I think I lose a day or two each year by not waiting until the very end.
Recent purchase dates: 3/6/07; 11/4/07 (I was moving and this was my only phone); 11/2/08; 11/1/09; 10/31/10; 10/29/11. Thus I buy more minutes roughly every 364 days (thank goodness for leap years), and I don't have a lot of trouble remembering that November 1 is approaching (although I may have to start thinking in terms of Halloween, but that's not hard to remember either).
My guess is that your cell phone company will send you some sort of notice if you are in the first category, but I don't remember what actually happened in early November, 2007 when my minutes were running low.
1) if you use lots of minutes, you want to pay attention to when you are about to run out, say when you only have 10 minutes left.
2) if you use very few minutes, you want to keep track of when your minutes expire.
I am in the second category, and the cell phone company sends me text messages as the expiration date approaches. I bought 1000 minutes for $100 when I first started, and those minutes were good for one year. My subsequent purchases have been smaller, but they also were good for one year. I think I lose a day or two each year by not waiting until the very end.
Recent purchase dates: 3/6/07; 11/4/07 (I was moving and this was my only phone); 11/2/08; 11/1/09; 10/31/10; 10/29/11. Thus I buy more minutes roughly every 364 days (thank goodness for leap years), and I don't have a lot of trouble remembering that November 1 is approaching (although I may have to start thinking in terms of Halloween, but that's not hard to remember either).
My guess is that your cell phone company will send you some sort of notice if you are in the first category, but I don't remember what actually happened in early November, 2007 when my minutes were running low.
Re: Help explain pre-paid phone vs a contract
As was discussed before, your prepaid provider will do its best to text you any and everything, eating up your minutes.
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Re: Help explain pre-paid phone vs a contract
My wife and I have Tracfones. With this company, you buy both minutes and time. The minutes never expire, but the time does run down. For example, you can buy a 60 minute card with 90 days of service. The face of the phone displays both the time remaining and the minutes remaining. Most of the available phones provide double minutes meaning that when you buy a 60 minute/90 day card, you get 120 minutes of talk time that must be used within 90 days of service. They also have plans that renew automatically every 30 days. The cost is low and I've found the service/coverage to be excellent. You can select from several models of phones and the cost for the phone is really cheap. Watch the sales fliers for Target or Walgreen's or other similar type stores and you can get a pretty good deal on the phone or go onto the Tracfone site and check out their deals. I've even found free reconditioned phones available on their website.
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- daytona084
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Re: Help explain pre-paid phone vs a contract
My prepaid plan has unlimited texting.norookie wrote: As was discussed before, your prepaid provider will do its best to text you any and everything, eating up your minutes.
I also get no unsolicited texts from the provider.
Last edited by daytona084 on Sat Jan 14, 2012 10:32 pm, edited 1 time in total.
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Re: Help explain pre-paid phone vs a contract
My prepaid plan (and I think most of them) can be set to automatically reload.Muchtolearn wrote:I need to get my own phone soon once I finally quit my job and retire. I don't understand that difference. If you get pre-paid can you set it to automatically reload or do you just suddenly go dead?
Re: Help explain pre-paid phone vs a contract
I believe that with T-mobile at least, once you've reached the $100 level, any amount of money you put toward a refill will renew all of your minutes. So if you haven't used them all, you can contribute a smaller amount (like $20) and all the minutes, new and old, are good for another year.Since I am lazy, I buy enough so I don't have to refill it for 365 days. With Verizon and T-mobile, this amount is $100. I don't use my phones much.
But double-check on that...
Re: Help explain pre-paid phone vs a contract
Yes. My plan is t-mobile, and while I didn't identify it as such, I mentioned that subsequent purchases buy a whole year once you have hit the $100 mark. See my previous post for my purchase dates since 2007.
Re: Help explain pre-paid phone vs a contract
I have used prepaid T-Mobile, prepaid AT&T and now PagePlus (prepaid Verizon MVNO). I do not recall receiving a torrent of text from any of them.norookie wrote: As was discussed before, your prepaid provider will do its best to text you any and everything, eating up your minutes.
Most prepaid carriers should have the option to auto top-up every month (if it's a monthly plan), top-up when the cash value drops below a specified amount (if it's a cash plan). If you are the type that uses very little minutes, buy 1 year worth of minutes and set a reminder for yourself to top up next year.Muchtolearn wrote:I need to get my own phone soon once I finally quit my job and retire. I don't understand that difference. If you get pre-paid can you set it to automatically reload or do you just suddenly go dead?
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Re: Help explain pre-paid phone vs a contract
Thanks all. I probably use about 2000 minutes a month and maybe 100 texts. Maybe there is an unlimited pre-paid plan? I cannot figure out why one would use a contract if you can use a pre-paid plan?
Re: Help explain pre-paid phone vs a contract
I think with most pre-paid options you have to buy your phone up front and that can be several hundred dollars whereas you get it much cheaper / free if you sign a contract and can change / upgrade to a newer phone for a discounted price every 2 years if you extend your contract again.
The TMobile pay as you go pre-paid option would not be a cheap option if you are using 2000 minutes a month in calls. That is quite a bit more than most people with pre-paid plans are using and the plans are generally attractive to people that don't use a lot of minutes. A Wal-Mart near us has a 'Mobile Center' or something and they seem to have several pre-paid options including Virgin, Straighttalk and Tracfone. I had TMobile for several years and did the $100 for 1K minutes that last 1 year but recently switched to Tracfone (based on previous Boglehead threads) as with a triple minutes for life phone it works out to be cheaper. I am happy so far with Tracfone but the pay as you go option I am using would not be a good deal for your situation.
The TMobile pay as you go pre-paid option would not be a cheap option if you are using 2000 minutes a month in calls. That is quite a bit more than most people with pre-paid plans are using and the plans are generally attractive to people that don't use a lot of minutes. A Wal-Mart near us has a 'Mobile Center' or something and they seem to have several pre-paid options including Virgin, Straighttalk and Tracfone. I had TMobile for several years and did the $100 for 1K minutes that last 1 year but recently switched to Tracfone (based on previous Boglehead threads) as with a triple minutes for life phone it works out to be cheaper. I am happy so far with Tracfone but the pay as you go option I am using would not be a good deal for your situation.
Re: Help explain pre-paid phone vs a contract
T-mobile has month to month plans as do many other providers.
http://prepaid-phones.t-mobile.com/prepaid-plans?
They are listed as prepaid. The difference between the everything unlimited $50, $60, and $70 a month plans is the amount of 4G web you get (that's the way I read it).
http://prepaid-phones.t-mobile.com/prepaid-plans?
They are listed as prepaid. The difference between the everything unlimited $50, $60, and $70 a month plans is the amount of 4G web you get (that's the way I read it).
Re: Help explain pre-paid phone vs a contract
I believe the prepaid phones do not include the most coveted phones like the iPhone or Samsung Galaxy. Generally older less desirable phones.
- Dan-in-Virginia
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Re: Help explain pre-paid phone vs a contract
In the era of smart phones, contracts are typically combined with a phone subsidy. For example, I recently bought four 64GB iPhone 4s phones for $399 each (plus a $99 for AppleCare+ for each to insure against damage). Without the subsidy the phones would have cost me $849 each ($948 with AppleCare+) and I would have paid $3,792 instead of $1,992, a savings of $1,800. For smart phones, data plans normally require month-to-month billing plans, even if they are unlocked without a contract.
One of the reasons I love the iPhone is that my insurance is with Apple, not the carrier. So I can walk into any Apple store to get it repaired or replaced, which I have done. With carriers, their insurance process is a massive mess and it gets added to your bill every month without end.
If you have a plain jane, voice and sms phone only, sure you could do that via pre-paid.
One of the reasons I love the iPhone is that my insurance is with Apple, not the carrier. So I can walk into any Apple store to get it repaired or replaced, which I have done. With carriers, their insurance process is a massive mess and it gets added to your bill every month without end.
If you have a plain jane, voice and sms phone only, sure you could do that via pre-paid.
Re: Help explain pre-paid phone vs a contract
Yes, you are right. I should have been more clear about that in my post. I personally feel that this feature is one of the best of the pre-paid plans. So glad AT&T buyout of T-mobile isn't going to happen.Wabbit wrote:I believe that with T-mobile at least, once you've reached the $100 level, any amount of money you put toward a refill will renew all of your minutes. So if you haven't used them all, you can contribute a smaller amount (like $20) and all the minutes, new and old, are good for another year.Since I am lazy, I buy enough so I don't have to refill it for 365 days. With Verizon and T-mobile, this amount is $100. I don't use my phones much.
But double-check on that...
Because all that you can get in the beginning was post-paid plans. People are creatures of habit.Muchtolearn wrote: I cannot figure out why one would use a contract if you can use a pre-paid plan?
Also, as others have written, you don't get the "good" phones with pre-paid plans. As far as I know, you can't get an iPhone on pre-paid - not that I would want an iPhone, but you might.
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Re: Help explain pre-paid phone vs a contract
I would never get an iphone. In fact, when I pack it in, I think I will go back in time at least for awhile and just have phone and text. So it sounds like no smartphone needed. Then its just talk and text and the issue I guess is whether to pay the full phone cost up front or go via pre-pay where you pay more for the phone. But I have seen T mobile with just about everything for $60 a month. I guess I will procrastinate until I have to do something.
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Re: Help explain pre-paid phone vs a contract
With many prepaid plans having unlimited options, I've asked my kids that question (they have prepaid also), they say people do it to get expensive smart phones. I think the other situation where it could pay off is family plans...though people always seem to end up with issues due to kid's usage, most of which would be avoided with prepaid.Muchtolearn wrote:Thanks all. I probably use about 2000 minutes a month and maybe 100 texts. Maybe there is an unlimited pre-paid plan? I cannot figure out why one would use a contract if you can use a pre-paid plan?
We have Boost and T-mobile prepaid. We don't use phone much so just put minimal amounts on, but both have prepaid plans for heavy users also.
Boost has a monthly unlimited everything prepaid plan that starts at $50 and then they have something they call "shrinkage" that reduces cost over time.
I'm not sure what T-mobile has but they must have something as one of my kids has switched to them after having had a boost smart phone for a few years.
Re: Help explain pre-paid phone vs a contract
I started out with contract to get my employer's 15% discount. The contract period has now expired, but I still get the discount. So there are reasons beyond phone discounts to get a contract.Muchtolearn wrote:Thanks all. I probably use about 2000 minutes a month and maybe 100 texts. Maybe there is an unlimited pre-paid plan? I cannot figure out why one would use a contract if you can use a pre-paid plan?
Re: Help explain pre-paid phone vs a contract
If you're buying the phone directly from the provider that's probably true, but if you're on a carriers like T-Mobile, ATT or Verizon, you can do prepaid with most any phone that you own outright by getting a prepaid sim for it.dickenjb wrote:I believe the prepaid phones do not include the most coveted phones like the iPhone or Samsung Galaxy. Generally older less desirable phones.
I got a used unlocked HTC MyTouch 4g smartphone for around $220 that I use with T-Mobile's prepaid service.
I mostly use their 10 cents a minute plan, but I can switch over to a $3 a day data plan whenever I need it. Since the MyTouch has wifi, I hardly ever need the data plan.
Since September when I got the phone, I've only used around $21 in airtime for minutes and day passes. That works out to $5 a month and seems perfect for an occasional use phone that's data ready in a pinch.
When I do activate the data service, I usually use the phone's wifi hotspot feature and connect my Tablet through the phone. You can share the phone's Internet connection over wifi to up to 5 devices (tablets, laptops, etc).
Jim
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Re: Help explain pre-paid phone vs a contract
Gray wrote:In the era of smart phones, contracts are typically combined with a phone subsidy. For example, I recently bought four 64GB iPhone 4s phones for $399 each (plus a $99 for AppleCare+ for each to insure against damage). Without the subsidy the phones would have cost me $849 each ($948 with AppleCare+) and I would have paid $3,792 instead of $1,992, a savings of $1,800. For smart phones, data plans normally require month-to-month billing plans, even if they are unlocked without a contract.
One of the reasons I love the iPhone is that my insurance is with Apple, not the carrier. So I can walk into any Apple store to get it repaired or replaced, which I have done. With carriers, their insurance process is a massive mess and it gets added to your bill every month without end.
If you have a plain jane, voice and sms phone only, sure you could do that via pre-paid.
Wow you realize the AppleCare+ is 25% of the purchase price to extend a warranty for two years!
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- Dan-in-Virginia
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Re: Help explain pre-paid phone vs a contract
I didn't have AppleCare on my wife's iPhone 3GS when she dropped it and shattered the screen. Getting it repaired at the Apple store was very expensive. I found a place elsewhere, but it was still just over $100.
And the 64gb iphone 4s costs $849. My subsidized cost was $399.
Also, when my wife had an issue with her phone early in her ownership period, she took it to the Apple Store and they replaced it with a new one (still under factory warranty).
Apple tends to do very good warranty repairs in short time frames at their stores. I want access to that for these phones during the period where I am using these devices.
Real computer-related examples: For my MacBook with a keyboard issue, replaced the keyboard. Screen issue, replaced the whole screen. Battery issue, replaced the battery. It's pretty darn awesome the level of support you get with AppleCare. The "+" is a new feature for the iPhone where they will fix the phone twice in response to accidental damage. Previously, AppleCare for the iPhone did not include accidental damage, and I did not buy it.
You can get policies like Squaretrade, and I have for my iPad, but I would much rather be able to go to an Apple store then have to send it away, or go to some third party repair operation.
And the 64gb iphone 4s costs $849. My subsidized cost was $399.
Also, when my wife had an issue with her phone early in her ownership period, she took it to the Apple Store and they replaced it with a new one (still under factory warranty).
Apple tends to do very good warranty repairs in short time frames at their stores. I want access to that for these phones during the period where I am using these devices.
Real computer-related examples: For my MacBook with a keyboard issue, replaced the keyboard. Screen issue, replaced the whole screen. Battery issue, replaced the battery. It's pretty darn awesome the level of support you get with AppleCare. The "+" is a new feature for the iPhone where they will fix the phone twice in response to accidental damage. Previously, AppleCare for the iPhone did not include accidental damage, and I did not buy it.
You can get policies like Squaretrade, and I have for my iPad, but I would much rather be able to go to an Apple store then have to send it away, or go to some third party repair operation.
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Re: Help explain pre-paid phone vs a contract
I'm not sure if the post-paid phone subsidies are always as much as they claim. My pre-paid boost phone that I bought about 18 months ago was $60-70, but if you were using the same phone with Sprint (the owner of Boost) the price was something like $200 (or free with a 2 year contract).
Re: Help explain pre-paid phone vs a contract
you can get the best of both worlds by getting a monthly plan no-contract phone like Virgin Mobile Beyond Talk plans ($55/mo gets you unlimited minutes, text messaging, and data):
http://www.virginmobileusa.com/cell-pho ... -plans.jsp
if you hate the service, you can end it no penalty but you will be out the money to buy the phone (they are not subsidized) but there are android phones available (no iPhone).
http://www.virginmobileusa.com/cell-pho ... -plans.jsp
if you hate the service, you can end it no penalty but you will be out the money to buy the phone (they are not subsidized) but there are android phones available (no iPhone).
- Dan-in-Virginia
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Re: Help explain pre-paid phone vs a contract
There's no way I would consider an Android phone. It's part of a fragmented ecosystem that is dominated by the phone carriers, who determine which upgrades and features you get, and when. Then there's the matter of support, from the carriers with stores staffed by people who don't know the technology. Been there, done that (with all the major carriers). The new Windows Phone 8 platform is looking very promising. They're building on the mistakes of Android and the strengths of iOS. Not saying I'll get one, but I'm watching with interest.
Still the Virgin mobile plan, as I understand it, will charge you through the nose and make you pay for customer support. There are a lot of tangible and intangible benefits of going the Apple route that people don't understand until they've taken other paths.
Still the Virgin mobile plan, as I understand it, will charge you through the nose and make you pay for customer support. There are a lot of tangible and intangible benefits of going the Apple route that people don't understand until they've taken other paths.
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Re: Help explain pre-paid phone vs a contract
We have Tracfones, use them only in emergencies like when a car breaks down or for checking if someone wants a pizza, keep the phones unpowered in the cars, and only pay once a year for around $100 each phone when we have to renew. We are not the gabbing kind people and have each now 1000 minutes on the phones. This setup is ideal for us. Our Tracfones last for more than 3 to 4 years.
We had before a plan, phone was broken in 1 year on a 2 year plan. After 2 years the sales lady did not want to shut phones down for an additional 3 months, could not believe to become a slave of this outfit. It became a major hassle for such a minor appliance. We are happy now.
We had before a plan, phone was broken in 1 year on a 2 year plan. After 2 years the sales lady did not want to shut phones down for an additional 3 months, could not believe to become a slave of this outfit. It became a major hassle for such a minor appliance. We are happy now.
Re: Help explain pre-paid phone vs a contract
i would counter your speculation with actual experience: i have been using an android phone for ~1 year now under virginmobile. i used to use an iPhone 3G for 2 yrs (under contract) prior to that under AT&T. the utility has not really changed at all. i use the same apps (they are available on both iOS and android market). yes - there are some differences between the interfaces you have to adapt to, but it would have been that way going from android to iOS just as it was doing the reverse. however, i have not experienced any tangible or intangible deficits going to android for my purposes and i consider myself a pretty intensive smartphone user (have ~15-20 apps that i actually use on a regular basis, text 100x month, email, listen to podcasts, music, mp3s, etc.). the iPhone was nice too but not practically better - it was more the smoothness and fluidity (and "cool" factor) of how it worked that was better (subjectively speaking). however, one tangible benefit i have received using virgin mobile is cost savings. my expected total cost x 2 yrs for the android is: $240 (phone itself) + $26/month (300 mins voice/ unlimited texting and data) x 24 months = $864. the total cost of my 16GB iphone was: $299 (phone) + $80/month (600 mins/unlimited text/data incl taxes) x 24 months = $2219. That is a 61% discount over a 2 yr period. nowadays i hear most iphone plans have a data limit of 2GB/month or so. i'm sure nowadays you get 4G service which i am sure is faster. but the amount of internet i use on my smartphone probably doesn't demand 4G.Gray wrote:There's no way I would consider an Android phone. It's part of a fragmented ecosystem that is dominated by the phone carriers, who determine which upgrades and features you get, and when. Then there's the matter of support, from the carriers with stores staffed by people who don't know the technology. Been there, done that (with all the major carriers). The new Windows Phone 8 platform is looking very promising. They're building on the mistakes of Android and the strengths of iOS. Not saying I'll get one, but I'm watching with interest.
Still the Virgin mobile plan, as I understand it, will charge you through the nose and make you pay for customer support. There are a lot of tangible and intangible benefits of going the Apple route that people don't understand until they've taken other paths.
not saying the iphone is not a better phone (in fact, i am pretty sure it is). but for me (and perhaps many consumers who don't use all the advanced functionality), i have other things i can spend $1000 other than having my phone do "cool" things.
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Re: Help explain pre-paid phone vs a contract
I spent $399 on the 64gb iPhone 4s and I have an unlimited data plan from Sprint.
I follow Android pretty closely, and have used many of my colleagues Android phones. Almost all of them are operating under different versions of software and go to different marketplaces for Apps. We can argue all day long a out the pros and cons of mobile operating systems, but the fact remains that an iPhone 3GS Introduced in June of 2009 can update to the very latest Apple iOS operating system version. There are NO Android devices that can claim the same.
I follow Android pretty closely, and have used many of my colleagues Android phones. Almost all of them are operating under different versions of software and go to different marketplaces for Apps. We can argue all day long a out the pros and cons of mobile operating systems, but the fact remains that an iPhone 3GS Introduced in June of 2009 can update to the very latest Apple iOS operating system version. There are NO Android devices that can claim the same.
Re: Help explain pre-paid phone vs a contract
Walmart straight talk plan for me and spouse,,,30 each per month 1000 min talk/1000 text/30meg web
I use about 60 minutes talk a month and about 500 texts.Use different android apps to communicate with tablet,and apps with Itouch
I use about 60 minutes talk a month and about 500 texts.Use different android apps to communicate with tablet,and apps with Itouch
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Re: Help explain pre-paid phone vs a contract
Do any carriers offer pre-paid / pay as you go options for the iPhone that might be worth looking into for the OP or is everything contract based ?
- FrugalInvestor
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Re: Help explain pre-paid phone vs a contract
I have not found that to be the case with Page Plus (through Kitty Wireless). I could count on one hand the number of texts I've received from them in the last year.norookie wrote: As was discussed before, your prepaid provider will do its best to text you any and everything, eating up your minutes.
Have a plan, stay the course and simplify. Then ignore the noise!
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Re: Help explain pre-paid phone vs a contract
Texts from my prepaid service (Boost) are free and I believe you have the option to turn them off from the account website.
My wife has T-mobile prepaid, she thinks that any texts she gets from them are free, too. In any case, she used about $12 of the initial $100 the first year and then had to add the minimum of $10 for another year, putting the account back up to $98, so not too worried about it.
My wife has T-mobile prepaid, she thinks that any texts she gets from them are free, too. In any case, she used about $12 of the initial $100 the first year and then had to add the minimum of $10 for another year, putting the account back up to $98, so not too worried about it.
Re: Help explain pre-paid phone vs a contract
Is there a reason why you chose the T-Mobile $100/1000 plan over the PagePlus $80/2000 plan?
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
Re: Help explain pre-paid phone vs a contract
It didn't exist 8 years ago? Is that a good reason?stives wrote:Is there a reason why you chose the T-Mobile $100/1000 plan over the PagePlus $80/2000 plan?
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Re: Help explain pre-paid phone vs a contract
Don't know if I had heard of page plus or if I did what their rates may have been at the time my wife got T-mobile. But looks low usage people like us would have to pay $80 per year, every year. With T-mobile year 2, 3, 4 would be only $10 each. So if it is that long before we need to add more than $10 and they don't change this, it'll be 4 years for $140.stives wrote:Is there a reason why you chose the T-Mobile $100/1000 plan over the PagePlus $80/2000 plan?
I don't know what technology Page Plus uses, but we chose to go with Boost for me and T-Mobile for my wife so that we'd have one CDMA phone and one GSM phone when traveling. Figured this would maybe give a bit better coverage.
Re: Help explain pre-paid phone vs a contract
Isn't that the good thing about prepaid? That you probably don't have a big early termination fee? I'm not sure if $100/1000 existed 8 years ago either...sscritic wrote:It didn't exist 8 years ago? Is that a good reason?stives wrote:Is there a reason why you chose the T-Mobile $100/1000 plan over the PagePlus $80/2000 plan?
I think you can do $10/120 days on PagePlus thereafter.jeffyscott wrote:Don't know if I had heard of page plus or if I did what their rates may have been at the time my wife got T-mobile. But looks low usage people like us would have to pay $80 per year, every year. With T-mobile year 2, 3, 4 would be only $10 each. So if it is that long before we need to add more than $10 and they don't change this, it'll be 4 years for $140.stives wrote:Is there a reason why you chose the T-Mobile $100/1000 plan over the PagePlus $80/2000 plan?
I don't know what technology Page Plus uses, but we chose to go with Boost for me and T-Mobile for my wife so that we'd have one CDMA phone and one GSM phone when traveling. Figured this would maybe give a bit better coverage.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
Re: Help explain pre-paid phone vs a contract
There is more to the decision for many than just how many minutes you can get per $. Although one carrier may give you more mins per $ they may also charge more for different types of usage so the overall cost may not be less over time. I believe PagePlus is 5 cents a text vs about 2c if you have Triple Mins at Tracfone. I can also make international calls for less than I was paying with an international plan at Qwest. Some carriers have a monthly or even daily service charge if you use the service even for one minute on any day. Paying even $5 a year in a service charge is significant if you only pay 3c a text. There is also the consideration of coverage. I switched from TMo to a Tracfone phone using AT&T towers and the coverage is nowhere near as good in my area as the TMo coverage. What works for one person may not be the right plan for another but in general there appears to be a lot of people very happy with the no contract options available today.
- FrugalInvestor
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Re: Help explain pre-paid phone vs a contract
I agree that there are many considerations. You need to take a look at the various carriers and plans and decide which fits your situation and usage patterns best. It's also important to consider where you use the phone most and what carrier will provide you with the best coverage.BogleBrit wrote:There is more to the decision for many than just how many minutes you can get per $. Although one carrier may give you more mins per $ they may also charge more for different types of usage so the overall cost may not be less over time. I believe PagePlus is 5 cents a text vs about 2c if you have Triple Mins at Tracfone. I can also make international calls for less than I was paying with an international plan at Qwest. Some carriers have a monthly or even daily service charge if you use the service even for one minute on any day. Paying even $5 a year in a service charge is significant if you only pay 3c a text. There is also the consideration of coverage. I switched from TMo to a Tracfone phone using AT&T towers and the coverage is nowhere near as good in my area as the TMo coverage. What works for one person may not be the right plan for another but in general there appears to be a lot of people very happy with the no contract options available today.
One benefit of a prepaid plan is that your upfront investment can be very small as compared to a contract carrier. Often you can even bring an old or used phone into the network. If you make a poor decision with one of these plans your out-of-pocket cost is likely to be much less than with a contract carrier. If you make a bad decision on a phone or just want to upgrade, you can often just 'swap' phones electronically carrying your existing plan over to the new phone. I like the flexibility as well as the cost.
Have a plan, stay the course and simplify. Then ignore the noise!
Re: Help explain pre-paid phone vs a contract
The comparison was between T-Mobile and PagePlus. I'm having a hard time seeing the benefits of T-Mobile over PagePlus for this kind of purchase outside of very specific circumstances.BogleBrit wrote:There is more to the decision for many than just how many minutes you can get per $. Although one carrier may give you more mins per $ they may also charge more for different types of usage so the overall cost may not be less over time. I believe PagePlus is 5 cents a text vs about 2c if you have Triple Mins at Tracfone. I can also make international calls for less than I was paying with an international plan at Qwest. Some carriers have a monthly or even daily service charge if you use the service even for one minute on any day. Paying even $5 a year in a service charge is significant if you only pay 3c a text. There is also the consideration of coverage. I switched from TMo to a Tracfone phone using AT&T towers and the coverage is nowhere near as good in my area as the TMo coverage. What works for one person may not be the right plan for another but in general there appears to be a lot of people very happy with the no contract options available today.
Last edited by kirent on Mon Jan 16, 2012 8:03 pm, edited 1 time in total.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
Re: Help explain pre-paid phone vs a contract
You asked for our reasons. I told you in a slightly indirect way that I started at $100 for 1000 minutes 8 years ago. Was that not clear? I don't know why you ask a question and then doubt the answer you were given. OK, I didn't start until August of 2004, so it's not a full 8 years, but I didn't expect you needed to know the number of months; this isn't social security.stives wrote:Isn't that the good thing about prepaid? That you probably don't have a big early termination fee? I'm not sure if $100/1000 existed 8 years ago either...sscritic wrote:It didn't exist 8 years ago? Is that a good reason?stives wrote:Is there a reason why you chose the T-Mobile $100/1000 plan over the PagePlus $80/2000 plan?
Since you know about PagePlus, can I use my current phone or will I have to buy a new one? [I know I could look it up myself, but this is bogleheads, so we always ask others to do our looking for us.] That might be one reason not to switch. The other reason is that I would lose any minutes I have left. Sunk cost you know. So that suggests only switching at the end of "my year." But if I get to the end of my year with 500 minutes left, I can either buy new minutes, admittedly at a higher per minute cost, and stay with t-mobile with all my minutes good for another year* or throw the minutes away and switch to PagePlus. Maybe you could work up a spreadsheet to tell me if the savings from switching overcome the cost of wasted minutes. Again, I could do it myself, but boglehead principals must prevail.
* Note: $10 gets me 535 (=500 +35) minutes for the next year; they don't expire after 120 days as you suggest the PagePlus minutes do. I don't know that they do, but I trust you.
Re: Help explain pre-paid phone vs a contract
If you wanted to, you could always switch when you are in need of a $100 refill.sscritic wrote:You asked for our reasons. I told you in a slightly indirect way that I started at $100 for 1000 minutes 8 years ago. Was that not clear? I don't know why you ask a question and then doubt the answer you were given. OK, I didn't start until August of 2004, so it's not a full 8 years, but I didn't expect you needed to know the number of months; this isn't social security.stives wrote:Isn't that the good thing about prepaid? That you probably don't have a big early termination fee? I'm not sure if $100/1000 existed 8 years ago either...sscritic wrote:It didn't exist 8 years ago? Is that a good reason?stives wrote:Is there a reason why you chose the T-Mobile $100/1000 plan over the PagePlus $80/2000 plan?
Since you know about PagePlus, can I use my current phone or will I have to buy a new one? [I know I could look it up myself, but this is bogleheads, so we always ask others to do our looking for us.] That might be one reason not to switch. The other reason is that I would lose any minutes I have left. Sunk cost you know. So that suggests only switching at the end of "my year." But if I get to the end of my year with 500 minutes left, I can either buy new minutes, admittedly at a higher per minute cost, and stay with t-mobile with all my minutes good for another year* or throw the minutes away and switch to PagePlus. Maybe you could work up a spreadsheet to tell me if the savings from switching overcome the cost of wasted minutes. Again, I could do it myself, but boglehead principals must prevail.
* Note: $10 gets me 535 (=500 +35) minutes for the next year; they don't expire after 120 days as you suggest the PagePlus minutes do. I don't know that they do, but I trust you.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
Re: Help explain pre-paid phone vs a contract
You were right not to trust me. I just found my receipt from my phone purchase that came with some minutes. (It might have been two months before I first went for the $100 for 1000.)
Date: 1/16/2005, exactly seven years ago today. Ah, for the good old days.
Date: 1/16/2005, exactly seven years ago today. Ah, for the good old days.
Re: Help explain pre-paid phone vs a contract
I like what you had in brackets up there by the way.sscritic wrote:You were right not to trust me. I just found my receipt from my phone purchase that came with some minutes. (It might have been two months before I first went for the $100 for 1000.)
Date: 1/16/2005, exactly seven years ago today. Ah, for the good old days.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
Re: Help explain pre-paid phone vs a contract
True, but since the minimum purchase is $10 for 35 minutes good for a year, if you use less than 35 minutes a year, you will never run out. In fact, if you start with 1000 minutes, use 30 a year, buy another 35 minutes every year to keep your minutes alive, what will your average cost be when you hit 95? How many minutes will you be able to leave to your children as part of their inheritance?stives wrote: If you wanted to, you could always switch when you are in need of a $100 refill.
- LazyNihilist
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Re: Help explain pre-paid phone vs a contract
What is the RMD for the minutes once you reach 70?sscritic wrote:True, but since the minimum purchase is $10 for 35 minutes good for a year, if you use less than 35 minutes a year, you will never run out. In fact, if you start with 1000 minutes, use 30 a year, buy another 35 minutes every year to keep your minutes alive, what will your average cost be when you hit 95? How many minutes will you be able to leave to your children as part of their inheritance?stives wrote: If you wanted to, you could always switch when you are in need of a $100 refill.
The strong do what they can and the weak suffer what they must -Thucydides
Re: Help explain pre-paid phone vs a contract
www.kittywireless.com is a dealer that can auto refill prepaid page plus, but you'll pay full retail price though. Still much cheaper than post paid plans. Other dealers like callingmart.com run 5% off specials frequently.Muchtolearn wrote:I need to get my own phone soon once I finally quit my job and retire. I don't understand that difference. If you get pre-paid can you set it to automatically reload or do you just suddenly go dead?
- jeffyscott
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Re: Help explain pre-paid phone vs a contract
Our daughter inherited our tracfone when we went to T-Mobile. The "units" we had built up over a lifetime of saving, well 8 years or so, were used up in about 4 months.sscritic wrote:True, but since the minimum purchase is $10 for 35 minutes good for a year, if you use less than 35 minutes a year, you will never run out. In fact, if you start with 1000 minutes, use 30 a year, buy another 35 minutes every year to keep your minutes alive, what will your average cost be when you hit 95? How many minutes will you be able to leave to your children as part of their inheritance?stives wrote: If you wanted to, you could always switch when you are in need of a $100 refill.
Yes, why switch if the cost is less with T-Mo? My wife used $12 her first year, so that's 120 minutes used, leaving 880. If the $10 that was added is 35 minutes she had 915 minutes after adding the $10. So with a net decline of 85 minutes per year It'll be 11 years before she would need to add $100. 1 year at $100 and 10 years at $10, is $200 for 11 years...$18 per year, that is a price that I trust no one else is going to beat. Not sure what happens if her $18 phone dies, though.
- tuckeverlasting
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Re: Help explain pre-paid phone vs a contract
Here's a forum for discussion of all things cellphone, both pre-and post-paid: http://www.howardforums.com/forums.php? ... 8d51058077
I have had Tmobile prepaid for a long time, works for me.
I have had Tmobile prepaid for a long time, works for me.
It's Good To Be A Boglehead
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Re: Help explain pre-paid phone vs a contract
thank you tuck. Still haven't quit the job but if this young punk person keeps trying to micromanage every minute of my day, I just might.tuckeverlasting wrote:Here's a forum for discussion of all things cellphone, both pre-and post-paid: http://www.howardforums.com/forums.php? ... 8d51058077
I have had Tmobile prepaid for a long time, works for me.