With prepaid you generally buy a starter kit from the provider which sometimes comes with a handset (often not though).

This kit then gives you access to the phone network and a set amount of call credits / dollars to spend. When your credit runs out, you can simply ‘recharge’ your call credits and make more calls! Easy.

So it goes with out saying that a prepaid option gives you complete control over call expenses. However be careful using any number that cost you too much (international / sms competitions / directory connect etc.  as you could end using up all your credit faster than you realise.

If you’re not sure how much you are going to use your phone (especially if this is your first) then using a prepaid plan initially will you get a rough measure on how much you will be using your phone, and perhaps what level of postpaid contract plan you may decide to sign up for in the future.

Prepaid tends to be the cheaper option if you don’t make many calls as you do not have any monthly contract commitment, handset repayments etc.

Often parents buy a prepaid phone and starter kit for their children, but are concerned that they may run out of credit while they are out and not be able to contact anyone in an emergency. One benefit of all plans in Australia is that even if you don’t have any call credits remaining, you can still use the phone to make 000 calls and will be able to receive calls.

Another point to remember is that the call credits you buy may expire after a specified period (depends on the network). So be sure to not buy too many credits if you’re not going to use the phone enough in the required time.

Some providers will allow you to carry over unused credits so never be afraid to ask when your speaking with them.

It’s also important to investigate how and where you are able to ‘recharge’ your prepaid phone call credits. In most cases you can recharge at multiple points including supermarkets, ATM’s, 7-11 convenience stores, newsagents, etc. But if you’re not sure, ask the question.

What the right mobile plan for you is will largely depend on your personal circumstances because they each come with positives and negatives in terms of potential costs, contract terms, and call charges.

One of the first questions to ask is “Do I want to commit to monthly mobile bills and a contract, or would I prefer to pay as I go?”

If you’re happy with a contract and a monthly bill, then a postpaid plan (contract) can be a good option, however if you’d prefer the flexibility of only paying for what you use when you can afford it, then a prepaid plan could be better as you will not be burdened with a monthly bill regardless of how much, or little, you use the phone.

Each however have negatives and things to be aware of, so for more information

follow the links below:

- Postpaid Mobile Contracts
- Prepaid Mobile