When you opt for a prepaid phone, you won't need to commit to a long-term contract and can often avoid activation fees, overage charges, termination fees and fees for changing carriers. By buying a phone card, you can more easily manage your phone budget. For example, international calling cards are a great way to control costs when talking to friends and family abroad.

The flexibility to change carriers or only pay for what you use makes calling cards a natural choice as cell phones for seniors or children who may only use them in emergencies. Having a cache of prepaid minutes means you can get a hold of your loved ones when you need to without a high monthly bill. When you need more time, just purchase a top-up card and add it to the phone.