Cut the contract: How prepaid smartphones can save you money

Smartphones may make our lives easier, but boy, they sure do make our wallets lighter. A typical smartphone setup with one of the major U.S. carriers costs around $70 to $80 a month -- and that's on the lower end of the spectrum. So what if there were a way you could get the same kind of service for less than half the cost?

It turns out there is -- if you're willing to make a few trade-offs. The secret lies in a rapidly growing but rarely discussed segment of the smartphone market known as prepaid or contract-free service. Prepaid service has been around for some time, but in the last couple of years it's started to transform from a source of cheap, bottom-of-the-barrel phones into a viable outlet for compelling smartphones.

So what exactly do you give up by going the prepaid route and is the sacrifice worth the gain? Read on; you might just be surprised. Read more...