Updated: Jun 27, 2025

Phone bills can take a bite out of your budget, especially if you’re stuck in a pricey contract with hidden fees. Explore how prepaid phones and budget-friendly plans can help you stay connected without overspending.

Why Consider Prepaid and Low-Cost Plans

Traditional phone plans often come with high monthly bills, credit checks, and long contracts. On the other hand, prepaid plans let you pay upfront each month and only for what you use. There are no surprise charges, no commitments, and no penalties if you decide to stop or switch providers.

For people who want to control their spending, avoid credit traps, or just need a basic phone for calls and texts, prepaid plans are a smart choice. They’re ideal for anyone on a tight budget, including students, seniors, or those between jobs.

How Prepaid Phones Work

A prepaid phone is just like any other smartphone, except you pay for service before you use it. You can either buy a prepaid phone from a store or use your existing phone with a prepaid SIM card. Once you activate it, you can buy a plan that covers talk, text, and data for a set number of days or months.

There are no bills to track or contracts to sign. You simply add more money when your service runs out. Many carriers offer auto-pay options with discounts if you want to keep your service going without thinking about it.

You can find prepaid phones at stores like Walmart, Target, CVS, or directly from phone carriers like T-Mobile, AT&T, or Verizon. Brands like Moto, Samsung, and Nokia all make prepaid-friendly devices starting at around $50.

Best Budget-Friendly Carriers

There are many prepaid providers offering affordable plans—some as low as $10 a month. Here are a few popular options with low prices and good coverage:

Mint Mobile uses T-Mobile’s network and offers plans starting at $15 a month. You get unlimited talk and text, plus data. The more months you pay for upfront, the cheaper it is.

Visible is backed by Verizon and offers a simple $25 plan with unlimited talk, text, and data. It includes mobile hotspot use and no added taxes or fees.

Cricket Wireless is owned by AT&T and has prepaid plans starting at $30. You can bring your own phone and keep your number.

Tello runs on T-Mobile and lets you build your own plan. You can get a basic plan with unlimited texts and some data for under $10.

Boost Mobile also offers low-cost plans and often has promotions for free or discounted phones if you switch.

Each of these carriers lets you check your zip code to see if they offer strong coverage in your area.

Using Government Programs to Save

If you’re receiving SNAP, Medicaid, SSI, or other qualifying benefits, you may be eligible for the federal Lifeline program or the Affordable Connectivity Program (ACP). These programs offer free or discounted phone and internet services to low-income individuals.

With Lifeline, you can get a free phone and up to $9.25 off your monthly phone bill. The ACP can provide an additional discount of up to $30 per month on your internet or phone service. You may be able to combine both.

To apply or check eligibility, visit getinternet.gov or lifelinesupport.org.

How to Pick the Right Plan for You

Choosing the best plan depends on how you use your phone. If you mostly text and use Wi-Fi at home, a cheaper plan with little data may be enough. If you stream music or use GPS daily, look for a plan with more data or unlimited access.

Ask yourself:

• Do I need unlimited data, or will 1 to 5 GB be enough?

• Is mobile hotspot important for connecting other devices?

• Do I travel a lot or stay local most of the time?

• How much can I afford to spend each month?

It’s okay to start small and upgrade later. Many prepaid carriers let you adjust your plan month by month, so you’re never locked in.

Tips to Save Even More

If you’re trying to keep your phone bill low, there are extra ways to stretch your dollars.

Connect to Wi-Fi whenever possible to avoid using your mobile data. Many stores, libraries, and public areas offer free Wi-Fi.

Use messaging apps like WhatsApp, Facebook Messenger, or Signal for free texts and calls when you’re on Wi-Fi. These work across devices and don’t use your phone minutes.

Track your data usage in your phone settings so you don’t go over your limit. Most prepaid plans don’t charge overage fees, but they may slow your speed after you hit your cap.

Buy refill cards in-store or online when they’re on sale. Some retailers offer gift card bonuses or store credit when you top up.

Avoid buying apps, ringtones, or subscriptions through your carrier, as these often come with fees.

What About Prepaid Internet?

Some carriers now offer prepaid mobile internet plans that turn your phone or a separate hotspot into a Wi-Fi source. This is a good option for people who don’t have home internet and want flexibility without contracts.

Providers like Metro by T-Mobile, Cricket Wireless, and Straight Talk sell prepaid mobile hotspots and data plans that range from $10 to $50, depending on how much data you need.

Final Thoughts

Staying connected doesn’t have to mean sky-high phone bills or long-term contracts. With prepaid phones and low-cost plans, you can get everything you need—calls, texts, data, and even mobile internet—without spending more than you can afford. Take a little time to shop around, compare options, and pick the plan that works best for your needs and budget.