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Another benefit of having a contract is that you never need to worry about not being connected, be it for your business, your social life or an emergency. With contracts, there are many more included benefits, which range from free minutes and data to SMS bundles and free gifts. You could also receive special offers when you upgrade. You can choose the one that suits your budget and needs.

With prepaid, there are likely to be months when you spend a lot more than others. With your contract, if you find one that has the right amount of free minutes, data and SMS messages, the chances are that you know exactly what to expect every month. While there is a wide range of cellular contracts to choose from, the truth is that with the cost of the phone included in the 24 month contract, they can be expensive, especially those that include the latest smartphones, unlimited data, free minutes and all the added extras.

If you have a contract, turn your data off when you travel.

Best Buy Mobile: A Better Way to Shop for Phones and Plans

This means they can walk away whenever they want to. It also gives people the feeling that they have greater power over their monthly cell phone usage and spending. On prepaid, you can control exactly how much you spend on your phone each month and how many minutes and data you use, and pay for, allowing you to keep your costs to a minimum if needs be—whatever your budget allows, with prepaid you can stick to it. Instead, you only pay for what you need and use.

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Whereas a contract application involves a credit check, a prepaid plan requires no such prerequisites and is relatively hasslefree. When it comes to prepaid, you have a range of different options for bundles of data, airtime and SMS messages. Long gone are the sprints to the corner cafe in the rain to buy some airtime.

Almost every mobile banking app has a function for buying airtime, data, or SMS bundles.

Three big reasons why Americans aren’t upgrading their phones

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