Newly Budget-Minded Turn to Prepaid Phones by Andrew Lavalee in The Wall Street Journal reports how people are saving by converting from a cellphone service contract to pre-paid phone services, such as those offered by Virgin Mobile USA. The cost savings can range from $30 to $70 per month depending on the current contract. Pre-paid phone can cost as little as $10 per month, after a $10 investment in the phone.
My spouse has been using a Virgin Mobile pre-paid phone for about two years, and has had a very good experience. It works since she only makes calls as needed, versus using a cellphone to pass the time while driving or during other down time.
Of course, I think the best cost saving is to not own a cell phone, which is the case for me. For now, a cell phone is among the things that I don't want or need.
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This is not financial advice. Please consult a professional advisor.
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