Are pre-paid cell phone plans for you?

Looking to reduce your cell phone bill? Pre-paid cell phone plans might be a great option for you, depending on your needs.

Prepaid cell phones: A growing way to save money
If your monthly cell-phone bill makes you cringe, especially as your budget tightens, Consumer Reports has long recommended considering a switch to prepaid phone service. Now a new study by the New Millennium Research Council (NMRC) confirms just how rapidly this alternative to contract cell service is taking off during the current economic downturn.

Among the other findings:

* Almost one in five people who currently use a prepaid phone say they switched from a contract service within the last six months, citing the recession as the cause.

* Twenty percent of cell phone users have already cut back or are considering cutting back on service extras like email, texting, and Internet.

* Two thirds of prepaid customers say they are saving money compared to a contract cell or landline plan.

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