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Who Needs a Prepaid Phone?

1. If you're on a budget...

It's hard to argue with the numbers -- a prepaid cell phone will run you less than a traditional plan almost every time. For example, unlimited text and minutes with MetroPCS costs just $40 per month. A similar two-year contract service on Sprint (albeit with a few additional features like GPS, global roaming, and more) will run you $100. Coverage areas generally aren't as good with prepaid plans, though, so if being able to talk anywhere is critical, think twice.

If you want extra features on a prepaid phone, the price begins to creep up. Global text messaging, IM capability and GPS functionality will add $5 per month to your bill. International calling bumps it up another $10. Call forwarding, unlimited directory assistance and ringtone bundles cost extra as well.

Tags: prepaid

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