Generally speaking, it's often more economical to sign a contract with a cell phone service provider in which you will make a long-term commitment (usually for two years) and pay a monthly bill. In some cases, however, it might make sense to use a no-contract plan, in which you pre-pay into an account (or buy a pre-paid card) and pay only for the calls you make and the time you use.

Typically, paying as you go will be more expensive than a long-term contract. Many no-contract plans charge 10 cents per minute for a call, or 20 cents for a text. If you're on the phone for 30 minutes per day, on average, that's three dollars a day, or $90 per month nearly twice the national average monthly cell phone bill. However, if you rarely use the phone if you make or receive an average of one or two brief phone calls per day you might want to consider pay as you go.

A no-contract, prepaid system is preferable if you're not sure you can pay your bills month-to-month. In that case, text or call only in critical situations, and don't spend money on extras such as ringtones or daily messages. If you do a lot of texting, look for pre-paid accounts that offer a certain number of messages per month: 1,000 for $10, perhaps. If you're constantly texting, find an account that will give you unlimited messaging.

Manage your account carefully. Be sure you have enough money in your account to cover your calls, and make sure you know the nearest place where you can refill your account or buy a new card.

To view non-contract wireless ratings, click here:

http://www.jdpower.com/Telecom/ratings/non-contract-wireless-ratings/