Which is Better? Phone Contracts vs. Pay As You Go

Just like the next person, you probably can’t live a day without your mobile phone. Gone are the days when mobile phones used to be luxuries. Today, it’s rare to see someone without a phone. Not only are phones handy for everyday communication but it’s also used for checking emails, website browsing, music streaming, playing online games and even shopping online.

With mobile phones now a necessity for the digital lifestyle, phone offers abound in the market. If you’re in the market for a new phone, choosing between a Pay As You Go deal versus a pay monthly contract can be quite confusing. To help you choose wisely, here’s a comparison of the two types of phone deals.

Pay Monthly Contracts

Between pay monthly and pay as you go, the former is largely preferred by majority of subscribers in the UK and for good reasons. With pay monthly contracts, you will essentially get a free handset because its cost is spread over the duration of the contract’s term. Typically, the term is 24 months wherein you are required to pay a fixed monthly fee. Other than the handset, you also get to avail a phone bundle that includes allowances for your call, text and data services.

One of the main reasons why subscribers are attracted to pay monthly contracts is obviously because of the free handset. There are also regular promotions offered only for people who are tied up to a contract. But there’s also a downside to think about. Phone contracts can be quite expensive due to hidden charges and other fees. If you failed to pick the right plan then you’ll likely end up paying more than what you’re actually using or need.

Pay As You Go

Pay As You Go deals, on one hand, may not be as popular as pay monthly contracts but it’s actually often recommended if you want to save more money on your phone bill. With Pay As You Go, you don’t get any free handset. This means you’ll have to buy the phone and the SIM card upfront. If you have cash, this is a smarter option since you won’t need to worry about any lengthy contracts and monthly phone bills.

Unlike pay monthly contracts, however, Pay As You Go will need you to top-up your phone with credit before you can call, text and use data on your mobile. You’ll have more control on your bill because you only top-up when needed. You don’t have to worry about going beyond your bundle’s set allowances either. But there’s just one problem. While cheaper in most cases, it’s not always convenient especially during emergencies. Rates for calls, texts and data usage are also relatively more expensive than if you have a phone contract.

Which is Better?

Most experts will tell you to opt for a Pay As You Go deal if you want to save money in the long run. Not only will you have more control of your phone bill but you won’t have to be tied up to a lengthy contract with hidden fees and other hefty charges.

PAYG deals, however, are not for everyone. When you’re a heavy mobile user and you want cheaper rates on your phone services, getting a phone contract is worth considering. If you also want the latest handset but can’t pay for it upfront, a phone contract will let you spread the cost of said phone over 24 months. Bottom line, there’s no one better option for everyone. It will depend on what you need and what you can afford.

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