Contract, Prepaid and Free Government Cell Phones: Phones for Every Budget

Fortunately, prepaid cell phones have evolved and no longer carry the negative connotation of being phones for irresponsible people. Consumers are choosing prepaid cell phones because it makes more sense on their budget and their lifestyle. Not everyone wants to lock into a long-term contract with the cell phone carrier for what they believe is a discount rate.

Depending on your cell phone usage, a prepaid cell phone may be less expensive, more flexible and a preferred option to a contract plan.

There was a time when prepaid cell phone service was only offered by a few carriers such as TracFone and T Mobile. As the economy began to decline and prepaid cell phone demand rose, more and more cell phone providers entered the arena. As it stands now, just about every service provider offers a prepaid alternative to their contract services. Verizon, AT&T and new comers such as Straight Talk and Metro PCS all offer prepaid service. Check out About Prepaid Cell Phones  for a more comprehensive list of providers and provider plans.

Prepaid cell phones are now feature rich.  Gone are the days of no prepaid texting, email or web browsing.  Cell phone carriers offer smartphone options with all of the bells and whistles that contract plans offer.  An outsider looking in cannot differentiate between a prepaid and contract service anymore.  The only difference is the cost and method of payment.

The one drawback to prepaid cell service is that consumers who want the phones with the latest bells and whistles will pay a handsome price.  The one benefit of purchasing a contract service is the initial up-front cost of the phone is cheaper than the cost of purchasing the phone on a prepaid basis.

Consumers can look to spend up to a few hundred dollars more for the latest model cell phone on a prepaid basis.  AT&T, for example, charges close to $400 for a Blackberry cell phone on a prepaid basis whereas it's only $50 for customers willing to lock-in for the two-year contract (prices are subject to change). For those consumers who don't need the latest and greatest phone and can settle for a slightly older or less feature rich model, the costs of the phone drops.

Individuals who would otherwise have to forfeit cell phone service because of poor credit can now enjoy the benefit and the security of having a cell phone for emergencies or whenever needed.

There are also free cell phone options for low-income household. Keep in mind that the free cell phone programs are not available in all states. It's up to the state's Public Utilities Commission to grant access to the carriers offering free service to low-income households. Free Government Phones.org provides a summary of information on which states allow free cell phone service, how to qualify and how to apply.

The free cell phone services provides phones to households that otherwise might find it difficult to keep up with the financial demands of contract or prepaid cell phones. Assurance Wireless, ReachOut Wireless and SafeLink Wireless are the three major carriers offering free government cell phones. Individuals who qualify for services, provided the service is offered in the state, have got nothing to lose and much to gain by applying.

The bottom line is that it is now at the point where just about anyone can afford to own a cell phone.