I've got a prepaid plan b/c it works for me and I'm not hard on my phones. Have a smart phone and have unlimited 4G everything for $40/month -- data, text, phone (talk)<quoted text>
I think that now, with TracFone, you can keep your phone number. You should look into it. I use a TracFone. I don't use my phone a lot (though I do use it somewhat regularly for texting and an occassional call). I'd say my cell phone cost, if I were to average it out, comes out to about $5-$10 a month. I don't use it enough to warrant an expensive plan and after getting stuck with a contract once and no useable signal, I never want to get caught in that again! I don't trust 2 year contracts.
I'm also the kind of person that doesn't need the bright, shiny new phone that just came on the market. If someone is that type of person, then contract works better b/c you can upgrade cheap to the newest phone.