Saving Money on Mobile Phones: Pay as You Go Plans

April 22, 2009
Written by Cathy

343384475_5ad1045bba About a year ago, I analyzed my mobile phone usage and found that I could save more by canceling my monthly plan and switching to a pay-as-you-go prepaid plan.  Pay as you go plans are NOT just for people with bad credit.  They are also for people who don’t use all their minutes, and want to save money.

I was paying for a $39.99 600 minute plan per month.  Except after all the taxes and fees, the real total came out closer to $55 per month.  My statistical usage was between 300-450 minutes.  I had promotional rate, and the next plan down was 300 minutes for $39.99.  There was no benefit in downsizing my plan; it would not save me money, and cost the same with fewer minutes.

I switched to a pay-as-you go plan with T-mobile.  With my statistical usage, I pay $105 after taxes for 1150 minutes (1000 minutes plus 15% bonus minutes when paying $100) every 3 months.  With my monthly plan, I was paying approximately $165 every 3 months with a lot of unused minutes.

Monthly Plan per year

Prepaid per year

Yearly Savings

$660 $420 $240

I used exactly what I needed.

Did you drop your monthly plan for a prepaid? How did it work for you? If you have a monthly plan, would you consider prepaid? Why or why not?

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2 Responses to “Saving Money on Mobile Phones: Pay as You Go Plans”

  1. I switched to T-Mobile a few years back and have never regretted it. It’s not only pay as you go, but pay when – and what – you want. I put $100 on my phone last January and still haven’t used it up.

    The only time I ever deal with T-Mobile is when I log-in to my account to add more funds – no bills, no emails, nothing – even if months have gone by since my last visit.

    I’ve shopped around a few times since, and Virgin has a pretty good plan as well, but T-Mobile still wins in my book.

  2. Hi Phil, and welcome! That’s a great point about no monthly bills or maintenance to deal with. I never, ever get hit with extra charges either. If I run out of minutes, I get a warning, then my phone stops working. The way it’s supposed to be. So much simpler.

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