Should you get a PAYG phone or contract mobile phone

I am sure like many of you we remember when there were no mobile phones. We all manged quite well then but times change and now it seems everyone has a mobile phone. They are now an essential part of daily life.

There are two types of contracts available to you for mobile phones. The option of pay monthly or Pre pay – also known as PAYG.

Regardless of which type of contact you have there are disadvantages and advantages to both options.

 

Advantages of a contract mobile phone

  • You will often get a free or discounted mobile phone
  • Your package can include free minutes (known as talk time) plus free texts which can be included in our monthly fee.
  • Extra calls and texts can work out cheaper than PAYG
  • You also will get an excellent choice of up to date top of the range mobile phones.

Advantages of a pre pay (PAYG) mobile phone

  • You pay for your phone at point of sale rather than paying a monthly contract – so you are in control of the spend. This is ideal if you have to watch your budget or if you are buying the phone for a teenager.
  • You are not tied to a long-term contract
  • You have the option to change your phone at anytime
  • You know how much you will be spending each month.
  • You can also get a monthly rolling contract and with that package you often get cheaper minutes and a limited number of texts with a pay as you go SIM. This can also be extended to a 12 month rolling plan which could be slightly cheaper

Disadvantages of a contract mobile phone

  • To get a contract mobile phone you need a good credit rating. Without a good credit rating it will be virtually impossible to get a contract phone. I did this recent post on how to improve your credit score  http://overthehillandundertheradar.com/lifestyle/8-tips-improve-credit-score/
  • You will be locked into a contract and have to pay monthly for a set period.
  • While you will get a lot of free minutes and texts you need to ask yourself will you actually be using all of these so you will not be making good use of the offers.
  • For the majority of contact phones you cannot carry over the free minutes or texts to the following month so they could be wasted
  • Sadly you will not be able to cancel the contract even if you have found a better deal elsewhere or have changed your mind.

Disadvantages of a PAYG phone

  • You will need to buy your phone outright
  • The costs of the texts and calls are higher than on a contract
  • You could run out of credit when on a call – however calls to emergency services can still be made. Plus people can still call or text you.

How to find out which is better for you

  • Will you be making many calls or be texting a lot?
  • Will you be using your phone a great deal or keeping it just for emergencies?
  • What is your credit history?
  • Do you want to be tied into a long contract – often 24 months?
  • Will you want to change your phone on a regular basis?
  • Do you want the latest handset?

I hope these few tips will help you make the right decision on your next mobile phone

 

 

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