Pay As You Go Versus Contract Phones

Written by on April 1, 2013 in Technology - No comments | Print this page

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pay as you go phone plans

For many people, making the decision between pay as you go mobile phones and a contract deal is extremely difficult. They know that the call cost of using a contract phone will be cheaper if they use all their minutes.

At the same time if they do not use all their minutes, then they are probably wasting cash. There are a few things to consider before making a decision between the two packages that are on offer.

Do You Use Your Phone Daily?

Some people are phone fanatics, using their phones constantly throughout the day. They might send 50 text messages and be on calls for over an hour. For these people, a prepaid pay as you go deal is not going to be ideal. The costs associated with these deals mean that at the end of the monthly, they might have paid 50% or more in some cases.

On the flip side, some people hardly ever use their phones. Sometimes they might send 5 texts in a week and make 2 calls. Other weeks they might not use their phone at all. For these people, the pay as you go deal is going to be perfect.

Do You Have A Good Credit Rating?

In order to get a phone contract, you will need to have a strong credit rating. Admittedly this isn’t a house purchase, but phone companies will not give these contracts to any old person. If the person has an extremely bad credit rating, then the chances are they will be refused a contract.

Of course, if this is the case, then they still have the pay as you go option as a fall back plan. Think about your credit rating; is it really good enough?

Do You Need A High Tech Phone?

If you need a high tech phone, then the chances are you are going to be talking about £200 or more. Not many people have this kind of money lying around the house, so it is going to mean saving up. Of course, the other option is just to go with a phone contract. There are contracts with different usage limits, but for almost every single phone as well.

Instead of buying a phone with cash, you can pay it off, alongside the monthly contract fee. This will mean that you commit to a monthly payment, but at the same time, you won’t have to spend hundreds of pounds instantly.

What Are Your Finances Like?

After the economic recession, a lot of people have found themselves in debt. Committing to more monthly bills is not going to be ideal. Even though some months might actually end up being more expensive using a pay as you go phone, at least the users can just pay for them when they have the cash.

This saves them having to worry about having cash in their bank ready for when the direct debit comes out. Obviously if this direct debit was to bounce, then there would be multiple fees involved from the bank, so it could be the expensive option.

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Laura Ginn has been writing for technology blogs for over 5 years. During this time, she has reviewed over 100 mobile phones such as the HTC Wildfire S Black, not to mention dozens of tablets.

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