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Consumer Reports Rates Pre-Paid Cell Phone Plans

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Sep 16, 2009 5:45 pm US/Eastern

Consumer Reports Rates Pre-Paid Cell Phone Plans

LINK: Consumer Reports

(KDKA) Nearly 50 million people now use prepaid phone plans, and that number is growing.

Big companies such as AT&T, T-Mobile and Sprint have new plans, as do smaller companies.

Some are pay-as-you-go and others are like regular plans, but without a contract.

According to Consumer Reports, for people who don't call or text a lot, there are dozens of plans that offer reasonable deals, including ones from Tracfone and Virgin Mobile.

But now, even if you use your phone a lot, a prepaid plan could save you. For example, a new Boost Mobile plan offers a monthly, unlimited plan for $50 that covers minutes, texting as well as access to the Web.

Consumer Reports says that with the right prepaid plan, you could cut your phone bill in half even if you are a heavy user.

However, experts say be aware that with prepaid plans you usually have to buy a new phone. While they don't necessarily cost a lot, the choices are often very limited. For instance, Tracfone's Straight Talk plan offers just three types of phones.

As with any phone plan, Consumer Reports experts say to check out the details carefully. Make sure you're able to activate the plan, or open the account, in your area.

Avoid any plan that charges a daily fee whether you use the phone or not.
Also, avoid plans with a monthly fee for a set number of minutes. You may be buying more than you need, or get in a hole if you go over.
Consumer Reports says for now, most families are probably better off with a traditional contract plan. That's the kind where you can add another line for as little as $10 a month.

Still, if you're getting phone and texting service just for yourself, Consumer Reports says prepaid plans are worth considering.

If you're thinking of making a switch to a prepaid service, Consumer Reports experts say do it when your wireless contract is about over. Otherwise, you could be charged for terminating your plan early.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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