The gap between contracts and prepaid is smaller than most people think and in some cases does not exist anymore. I see prepaid plans nowadays that are competitive or even beat contract on price-per-minute evaluation. Recently we saw a few offers on $50 unlimited plans – all from prepaid providers.

The prepaid plan I currently use is called StraightTalk from Tracfone and gives me 1000 minutes, 1000 texts and 30mb of data for $30. Free 411 calls and all the usual benefits of Tracfone apply, of course. Now you have to agree that that is not a lightweight package but it is cheaper than most equivalent contracts out there. Without any hidden charges and all the usual bill frustrations or the contract.

For me there is just no reason to sign a two-year contract if I can get what I need without selling my cell-soul.

The biggest question outside of the ETF fee is whether or not you are getting value for your money. Most people say they are, but I am not always convinced. It is really a personal call, but seeing the numbers in a two year some often helps to clarify.

@Ray & nickel – Very true, so at a minimum you are in $175 of debt. The funny part is though, that ETF fee often is enough of a mental roadblock that people justify spending hundreds or thousands to finish out the contract.

@Ed – Glad you are almost done.

@Dean – Pay as you go is definitely a low minute user thing. If it is your only phone that a plan is a must. The math for buying the new phone would be whether or not you would save more than the ETF fee on a new fancy phone. Interesting thoughts on the no contract negotiating power.

I also don’t mind the contract because I like Sprint. I guess I’d feel differently if I didn’t, but it’s not that bad in my opinion. Plus, with Sprint, after a year they give you $75 off a phone and after two years you get $150 off the phone, so I think that’s a pretty good deal.

Interesting post!