Go Phones

Go phones, also known as Pay-as-you-go phones, allow you to pay only for the minutes you use. Here is the lowdown on traditional cell phones versus pay-as-you-go phones.

With traditional cell phones, you pay a monthly fee and sign a 1-2 year contract. Each month the phone company gives you a certain number of minutes, including some reduced fare minutes in the evenings or on weekends. You might also get specials where you can talk for free between phones on the same plan or between friends and family.

Here are the advantages and disadvantages of the contractual plan:

• Advantages: Great if you use your cell phone all the time. You often get a free phone for signing the contract. The per-minute fees are less expensive, and you don't have to worry about having your conversation cut off mid call.
• Disadvantages: You can get billed for roaming charges and for unknowingly going over your minutes. It is hard to get out of the contracts early. If you lose your phone, you have to buy a new one since you're tied into the contract.

Pay-as-you-go phones are convenience phones. They are ideal for people who occasionally need a cell phone for an emergency or who are too young to afford a monthly plan. A Go telephone is rarely free, but you also don't have a long term contract to worry about. You just buy minutes as you need them and the minutes are deducted from your prepaid account as you talk. Generally, a Go phone works best for someone using less than 300 minutes a month.

Here are the advantages and disadvantages of the Go plan:

• Advantages: No monthly contract. No need for credit cards. No surprises on a bill. You can add minutes any time. No credit checks. No wasted minutes each month.
• Disadvantages: Minutes will probably be more expensive (12 to 35 cents a minute but can range all the way up to 60 cents a minute). Phones are normally more expensive up front. Your minutes expire every 15 to 60 days, and customer service is generally minimal.

You can find pay-as-you-go phones at Best Buy (Bestbuy.com) and Amazon (Amazon.com).

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