Prepaid: For those who want to play it safe

A prepaid service allows you to monitor your usage more closely than a post-paid plan. There are no surprise bills, and you know exactly how much you want to spend each month – and not a cent over. If you don’t like surprise bills, or you can’t get a handle on your average monthly spend, then prepaid might be a good option. Prepaid mobile phone plans also provide flexibility if you know the amount you spend changes from month-to-month.

There is no need to pass a credit check to obtain a prepaid service; anybody can sign up, so it is an ideal option for teenagers.

Although a prepaid plan can save you money by avoiding any nasty surprises on your bill, there is a larger upfront cost if you require a new mobile phone. You also need to keep in mind your monthly credit has an expiry date. If you do forget to recharge your prepaid account, you may find yourself reverting back to the public phone, or two cups and a string.

Many prepaid plans do not offer international roaming, so read the fine print before choosing a prepaid service.

Post-paid: I’ll worry about the money later

A post-paid mobile phone plan means you won’t have to fuss about recharging your prepaid mobile phone. If you opt for direct debit, you may never even see a bill – you can continue to make calls each month and the account is managed automatically. This option is great for people who are confident their average call usage is less than their cap, and that they can afford it.

Is prepaid more expensive than post-paid?

Prepaid isn’t necessarily more expensive than post-paid, but it may require a larger upfront cost. Whether a prepaid plan is more expensive than a post-paid plan depends on the plan provider and how you use the service. However, there are now prepaid plans providing just as much value as post-paid. For example, the Vodafone $29 cap works out to be fairly comparable in value to the Vodafone $29 Flexi cap – the prepaid cap has $150 worth of calls to other networks, and $150 worth of calls to other Vodafone mobiles. The post-paid cap has $150 worth of calls, plus unlimited calls to other Vodafone mobiles.

To sign up for a post-paid service, you will need to be at least 18 years old and pass a credit check.