Maverick’s Guide To Finance – Postpaid vs Prepaid mobile plans

Almost everyone has a mobile phone, many people choose Postpaid mobile plan over Prepaid plan which in my opinion is a bad choice. Let me give my perception on that. I’ll take my personal example of AT&T, although this post can be applicable to all carriers.

There was a difference between Postpaid and Prepaid plans, few years ago in terms of service and features, however that gap was filled in recent years. I was using Postpaid plan for most of my life until I realized it was more expensive than Prepaid plan. One day, I switched from Postpaid to Prepaid, ever since it was pleasant and liberating.

I was paying more than $90, sometimes more than $100 with Postpaid plan which is 3 GB, 450 minutes and 20 cents per text. Now I’m paying $40 with unlimited talk, unlimited text and 3 GB high speed and throttled speed after that. Below are my observations I noticed during my one year’s usage with Prepaid plan, with Pros and Cons.

PROS:

  • No, the service is no different, you get same coverage, same call quality, same data speed.
  • With Prepaid, you won’t be charged for extra data you use, you just get slower data. For example, If you use Post paid, you end up using a 10 MB over 3 GB, you will be charged $10 fee. To add insult to injury, that extra data won’t be rolled over for next billing cycle.
  • Liberation from stress in order to monitor data usage every day.
  • You know what you are paying before hand, so you can plan your finances ahead for that month.
  • In life, given a choice, a no contract is always better than a contract. That can be applied to mobile plans as well.
  • You don’t get charged for text messages with a prepaid plan unlike postpaid plan.
  • Your unused data for that billing cycle will be rolled over to next month with Prepaid plan.
  • You can save $5 every month, when you enroll auto pay option.
  • You can keep the same phone number when switching to prepaid from postpaid.

CONS:

  • Customer Service is not that great for prepaid when compared to postpaid. However, I don’t use customer service that frequently, even if I did, the reason is to whine about data overage charges with postpaid which wouldn’t exist with Prepaid anyway.
  • There is no mobile app just a simple website where you can pay and monitor usage. On the bright side, it is very simple, you can just pay and monitor usage without having cluttering information and options.

To add icing on the cake, you can even save further by buying gift cards using AMEX which I explained in the post

A Maverick’s Guide To Credit Card – AMEX Blue Cash Preferred

If you are trying to take control of finances in your life. I advise you to try switching from postpaid to prepaid. You can visit following link for the plan I’m using right now.

AT&T Gophone prepaid plans. 

 

 

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