Brandy: One of the stumbling blocks I have to being able to cut back on expenses is contracts. We could cut back on some expenses we have except that we are contractually obligated to keep the service for a set amount of time.
How do you avoid contracts for services like phone, internet, cell, TV, ect? What do you think of companies who demand a contract for their services?
The only one we just canceled was the cell phone. We replaced that by getting two Tracfones, which are prepaid cell phones. Google on "prepaid cell phone" and you will find a lot of them. Tracfone has better coverage in our area so that's why we got those. The phones were $18 each at Walmart, the card with 120 minutes and 90 days was, I think, $30. We were helping some relatives move and thought the extra minutes would be used, that's the only reason I bought the 120 minute cards for them. The cheapest card is 60 minutes and is good for 90 days. The minutes roll over but the time (90 days) does not. So to keep the phone active you have to buy at least a $10 card every three months and the per-minute charge is about 33 cents, which is very high compared to most contract phones. For our purposes that's dirt cheap since we don't use it much.
With prepaid cell phones, the per-minute charge is generally higher than with a contract phone ONLY if you use the cell phone a lot. For people like us who perhaps make perhaps one 5-minute call every other month, the Tracfone is cheaper in the long run. The only reason we had a cell phone was that I wanted one for my wife to have in case the car broke down on her, etc. With the Tracfone, I thought I'd get one for myself too. So for $18 and $3.33 a month (60 minute card) I have a cell phone if I need it.
For someone who uses a cell phone for business or is always using it (talking to a friend in the grocery store saying "I'm looking at some carrots now") a prepaid phone is probably not a good deal.
Make sure you look at the coverage maps for each cell phone. The coverage for one that is cheaper may not be good in your area.
Another advantage of prepaid phones is that you're not out a lot of money if it gets lost/stolen and you don't have to fight with the phone company over the expensive overseas calls.
All of the regular cell phone companies now offer prepaid cell phones: Verizon, AT&T, Cingular, etc. with varying pricing plans but you may have to look for them on those web sites. And there are a bunch of other companies offering them.