CIO — Maybe your family circle includes teenagers who talk too much on their cell phones or elderly parents on limited incomes. If that's the case, you might consider a pre-paid wireless plan—an option that's been growing in popularity lately, due to the recession and a wider availability of options. Done right, these plans can be real money savers. But done wrong, there are a number of ugly gotchas that can make you sorry you listened to the hype and bought your phone at Wal-Mart (WMT) or the neighborhood Qwik-E-Mart.

[For more information on what pre-paid and pay-as-you-go wireless plans have to offer, see Why No-Contract Wireless is on the Rise. ]

I spent some time last week talking with experts at the California Public Utilities Commission and the San Francisco-based consumer-advocacy group The Utilities Reform Network, or TURN. I came away from those conversations thinking that wireless customers, sick of being hit with sky-high voice bills, are turning to pre-paid plans before getting the real scoop.

"For some consumers (pre-paid plans) are a great thing. "But you have to go in with your eyes open and be sure you're getting the deal you expected to get," says Bill Nusbaum, managing attorney for San Francisco-based TURN.

So here are eight factors that you should think about before signing up for a pre-paid plan.

1. What's the coverage area and are there roaming charges?

This is one to really watch. Some pre-paid wireless vendors offer service in a very limited area. But if you need to call elsewhere it may not be possible, or you could be hit with a very stiff roaming charge. What's more, the provider may not have a very robust network, meaning your call quality could be poor, or the phone may not work in your home or office because it's in a dead zone.

2. What do the minutes really cost?

Some plans simply won't let you make any more calls when you run out. But others keep the meter running at a much higher rate—and that can cost you as much as 45 cents a minute. Can you text, and if you can, what does it cost?

3. How good is the phone?

The phones that come with those pre-paid plans have gotten better, but you're probably still buying a fairly low-end handset. How's the sound quality? Are the keys responsive, and is the phone set up to send a text message without your constantly having to use a function key to toggle between numbers and text?

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