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What is pay as you go?

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The term is often used in talking about cellphone pricing plans. "Pay as you go" normally refers to a plan in which you pay for a certain number of minutes up-front and then use them. When your minutes are out, you recharge by buying more minutes.

These plans are good for people who can't easily establish credit, or who expect to use their phones only a little bit, but are often more expensive if you are using a lot of minutes.

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