A cell phone plan is a paid agreement with a cell phone carrier. It allows your cellphone to use the carrier’s network to make and receive calls, send text messages and use the internet through mobile data. Cell phone plans typically come in three different formats: pay-as-you-go plans, prepaid plans and a postpaid plan.  A pay-as-you-go plan allows you to purchase a bundle of minutes or unlimited phone usage for a given day. The bundle will be used up according to a predetermined rate by your carrier that charges you a fixed amount for calls, texts, and internet access or for the entire day’s usage. This rate is typically higher than prepaid and postpaid plans.  A prepaid plan sees customers pay for their plan upfront every month upfront at a fixed rate with the possibility of cancelling at any time. This rate typically encompasses phone calls, texts and internet data. Charges will be incurred when phone usage exceeds the amount paid for on the plan.  A month-to-month, or postpaid plan, sees customers enter into a contract typically over the course of 12-24 months where they pay each month for a set amount of minutes and/ or data. If this amount is exceeded, cell phone services will continue but customers are liable to be charged for their extra usage. Postpaid plans are the most common and often entitle customers to cellphone upgrades pending on their type of contract.