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Pay-As-You-Go phones, also known as Prepaid Cell Phones and Go-Phones, are mobile phones where service is bought in advance of use.  The device can be used until the consumer runs out of credit.  Instead of monthly plans that may or may not be beneficial, people can pay for only as much as they want.

Advantages of prepaid phones are numerous.  Plans and minutes are known to cost much less than monthly billing policies.  Users do not have to worry about making a strict payment every few weeks because, if they don’t have any money, they won’t be able to use the phone, versus building up debt.  Prepaid phones don’t have early termination fees, plans and can be used by people under the age of 18.  The device is popular among students, travelers and businesses.

There are some disadvantages to Pay-As-You-Go phones, though.  For people who call and text often, the rates may be higher than sticking with a monthly unlimited plan.  International and premium rate numbers cannot be dialed with these phones.

There have been some issues with security.  Worldwide police and security agencies are concerned that users will commit criminal and terrorist activities.  Prepaid phones sometimes allow the user to remain anonymous, therefore making it easier to create havoc.  In an effort to lessen the likelihood of problems occurring, officials are suggesting that users need to register their prepaid mobile phones.  However, many consumers are fighting the suggestion because they originally purchased the phone with anonymity intended.  This is not necessarily because they are going to create the next biggest scandal, but because they want their privacy to remain intact.  As of 2005, countries such as Australia, Germany, France, Japan, Hungary, Slovak Republic, Norway, Switzerland and South Africa have all required their Pay-As-You-Go users to register the phone.

There are many Prepaid cell phone providers in the United States.  Companies include: Boost Mobile (Sprint), GoPhone (AT&T), Virgin Mobile USA, Cricket, Lucky Wireless (Verizon), TracFone, Pay and Talk (Telus Mobility), Pre-Paid Wireless (US Cellular) and Jump Mobile (Leap Wireless).

Each company has its own payment options and amounts.  Some companies are strictly offering minute cards while others provide the option for monthly plans, as well.  Europe and the Middle East have numerous Pay-As-You-Go mobile phone businesses, too.

Prepaid mobile phones come in a variety of styles and, more often than not, may be mistaken as one of the main stream models.  Pay-As-You-Go devices can come with simple features to simply call a person or they can be equipped with the latest texting keyboard.

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