Fashion seems to always come full circle every few years, but many probably did not figure that cellphones would do the same. With every mobile company in the world investing millions of dollars into the next great smart phone, a number of consumers are going back to the early days and going the prepaid route.

When a person thinks of prepaid cellphones, they often think of old school types of phones with just basic phone and text services. However, a person can obtain a smartphone with numerous capabilities without having to commit to a two-year or longer service agreement.

The savings is what drives a lot of casual phone users to make the switch. According to reports, about one out of every three cell phone owners now opt for a prepaid plan. Those numbers are as high as they have been in years, and the savings is real right from the beginning.

As expected, many of the leading cellphone companies have jumped on the prepaid bandwagon, offering their own options to get a piece of the pie. AT&T, Verizon, Sprint and T-Mobile all have their own individual prepaid options, allowing people to buy data as well to use the internet on the go. TracFone continues to be the leading company in the prepaid business.

So with millions of people now saving money on their bill, what are the advantages to keeping a contract? For starters, most of the leading companies will only make their cutting edge cellphones available for contract customers. The prepaid options are more limited, and usually a person can’t obtain the latest model. Also, heavy users of data, peak hour cellphone minutes and/or text messaging will find that they would actually pay more if they were using a prepaid option.

Customers should consider all of their options before committing for the long term once their current contract is up. The prepaid cellphone market is back and stronger than ever for those who want to save some money.