Once you’ve decided which phone is right for you – you’ll need to choose a plan. If you have a good credit rating and don’t mind committing to a 1-2 year contract you should be getting a post-paid plan.

Otherwise you should get a prepaid (pay-as-you-go) plan. Prepaid plans tend to cost more than the longer term contracts.

The main thing to look for in a calling plan is the number of minutes you need. If you have previously used a cellular phone – you can get a good idea of how many minutes you need by looking at an old phone bill. Keep in mind that your minutes include calls made plus calls received.

Going over your designated number of minutes (Overage) is typically very expensive – you may pay $.40/minute or more in some cases.

Other factors regarding plans

Free Nights and Weekends – Some plans offer free calling after a certain hour and/or on weekends. If most of your calls are during the day this may not help much. Check each carrier for what hours count as nights.

Family Plans – Each carrier has plans that allow you to buy 2 or more phones that will share a single amount of minutes. Typically these plans include unlimited calling between members of the family plan. This can be a big money saver for couples.

Early termination fees Before purchasing a new cell phone and plan read the carrier’s policy on early cancellation fees. During the first week or so of your new contract you have an opportunity to cancel with no penalty fee. Most dealers offer a money back 7 to 10 day money guarantee. Some carriers are giving customers a thirty day “risk free” time period to try out the service.

If you are experiencing any problem with dropped calls or poor service this is the time to act and to cancel and get your money back. After this time has ended you are locked into your contract.

The early termination penalties are between $150 -$240 per phone depending on the carrier. These fees can add up to more if you are on a family plan and have two or more phones.

It is worthwhile asking the carrier if they have options to “pro-rate” the early termination fee linking it to the number of months remaining on the contract.

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