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Who Needs a Prepaid Phone?


It's hard to keep up with the cell phone market these days. New models hit store shelves seemingly every week, and carriers roll out new contract plans nearly as frequently. Maybe that's why the prepaid cell phone market is growing so rapidly.

Consumers are flocking toward no-contract, unlimited services. At least two prepaid carriers have seen their subscription rates double over the past year -- and now the big companies are rolling out their own prepaid options to retain their existing customers.

You generally won't have to have a credit card or leave deposits with these services, but you will have to buy your own phone, which can run anywhere from $30 to over $300, depending on the service you use and how many bells and whistles you want. In addition, most plans come with activation fees ranging anywhere from $15 to $35.

Prepaid's not for everyone, though. So how do you determine if it's a good fit? To help you figure it out, we've put together a list of the 10 types of situations where prepaid phones make sense. Click on 'Next' below to find out more.

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