Deciding Between Contract and Pay As You Go Phone

Deciding Between Contract and Pay As You Go Phone
By Melanie Sky

There are two main choices that you have available if you want to buy a phone. The first is to get a pay as you go mobile phone and the second is to get a contract phone. In this article I'll be talking about the differences between the two different types of payment methods as well as why you should consider getting either one.

A contract phone is a payment system where you set up a direct debit and pay a certain amount of money each month the mobile phone provider. In return, the mobile phone provider will provide you with a certain amount of minutes or texts that you don't have to pay extra for.

In some cases the mobile phone provider will call these free texts and minutes although in reality they are just what you are paying for with a contract. The advantage of the contract payment method is that you will never run out of minutes although you will have to pay a certain amount of money for every minute that you use over your allotted amount for the month.

On the other hand, with a pay as you go phone you aren't tied into any sort of contract. Instead, whenever you need extra minutes or texts you top up your phone and then can use the credit until you run out again.

This has the advantage of making sure that you never use more money than you actually need although has the downside that you will run out of credit and often when you need it most.

The type of payment method you get should be decided by how much you use a phone. If you are a regular user of a mobile phone and will use more than £20 a credit in a month then it is almost definitely worth your while to get a contract phone because it will be cheaper in the long run.

Not only that, but to provide an incentive to use a contract most phone providers will give you a discount on a high quality mobile phone when you get a contract with them.

This means that you will not have to pay anywhere near as much to get a good phone although you should remember that it's much more important to get a contract to provide you with the right amount of minutes and texts than it is to get a cheap phone.

If you'd like to learn more about phones in general then please visit free laptops with mobile phones. You'll find comparison tools and phone articles there.

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Deciding Between Contract and Pay As You Go Phone