It seems that nowadays, everybody has a cell phone. If you want to join the wave but cannot or don't want to sign a binding contract, prepaid cell phones may be the ideal choice. While under a regular contract you are forced to pay a fixed monthly fee, prepaid cell phones allow you to pay as you go, so you can control your spending. If you are considering prepaid cell phones, here is a breakdown of the advantages and disadvantages of this type of phone:

ADVANTAGES

• The main advantage of prepaid cell phones is the lack of a contract. Because you are not tied to any specific company or monthly rate, you can spend as much or as little as your budget allows. If you don't use your phone much, prepaid cell phones make a lot of sense, as you don't have to pay a fixed amount for minutes that go to waste.

• Another good advantage of prepaid cell phones is that there is no credit check required to open an account. This is great for teenagers or for those with no credit history.

• Prepaid cell phones don't require a deposit to open an account, unlike many other plans.

• Prepaid cell phones are a great option for parents who want their children to have a phone but want to have control over how much they spend.

DISADVANTAGES

• Prepaid cell phones are not free, as is the case with phones when you sign a year-long contract. This means a larger initial investment. Also, not all phone models work with prepaid plans, which means you have a limited selection on the type of phone you can use.

• Prepaid cell phones are more expensive to use. The cost per minute is usually 2-3 times higher than the price per minute under contract plans.

• Unless you are organized and keep track of your credit, you run the risk of running out of minutes when you most need them.