My bf does this, and it has worked out great for him for a long time. He usually spends very few minutes each month and goes a few months before having to renew them.
He is using the phone for work more lately and is considering getting a traditional plan, but otherwise, he's been happy with this setup for years. We even considered getting a family plan with my regular company, and the math just didn't work out to it benefiting him.
Also, he is on Net10, and they use the exact same network as AT&T, so he has service everywhere pretty much. We don't use a land line, so this is his main phone and it still works out.
It kinda seems like the big company "pay as you go" plans are kind of sketchy. Last time I looked into them, they wanted you to pay ~$20 a month PLUS the pay as you go costs. Not sure what that extra $20 gets you - maybe ability to use their fancier phones. It sounds just as expensive as the base plans that they have, at the end of the day.



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