Analysis: Is Prepaid Wireless or a Monthly Contract Cheaper?

Especially in a time of economic uncertainty, we’re all looking to cut costs. That doesn’t mean we have to cut corners to get there.

That begs the question: Is prepaid wireless (or pay as you go) cheaper than monthly, contract-based cell phone plans that lock you in for years with penalties if you try to leave early?

I’ve just published a comprehensive analysis that compares scenarios for 200, 400 or 1,000 minutes per month with prepaid wireless versus contract plans at Virgin Mobile, Boost Mobile, Net10, T-Mobile, Verizon Wireless, Tracfone and AT&T.

It’s not a short read, but that’s because this isn’t an easy question to analyze due to so many carriers offering so many different kinds of plans.

With the amount of money you spend on your cell phone bill over time, though, it’s important to assure that you’re at the right carrier and on the right plan based on your spending habits.

The analysis deconstructs the complicated and ultimately yields simple winners. Read on to learn if it’s time for you to switch your plan.