Only ten years ago mobile phones cost an arm and a leg and weighed just as heavy, they cost a lot to run, were very impractical and were only used by important or famous people. As time has progressed mobile phones have become smaller, cheaper and definitely easier on the eye resulting in 75% of the UK now owning a mobile phone.
With the technology advancing, so has the pricing systems, more and more people are now turning to contract phones as it provides great value for money compared to pay as you go. Providers are offering all sorts of incentives from free games consoles, laptops, cash back or even the mobile phones.
Monthly contracts are not for everyone and in this guide you will find out which deal is best suited for you whether it be pay as you go or contract.
Pay as you go (PAYG)
PAYG phones are what they sound like; you can only use your mobile phone for calls and texts if you have paid for it beforehand. This normally entails visiting the shop to purchase a top up card; you then phone your service provider up and provide them with the unique number on the back of your top up card. Recently you have been able to top up your mobile from a cashpoint or online.
Pros
Pay for what you use so there is no wasted allowance
No credit checks
No monthly contract obligation
Cons
More expensive for minutes and texts
You will have to buy your phone separately which will be expensive
Phone is useless if you are in an emergency and have no credit
Monthly contract
Monthly contract mobiles are again, what the name suggests. You pay a monthly subscription for a set amount of months (usually 12 or 18) and you are given an allowance of minutes and texts to use per month. The money comes straight out of your account via direct debit and you only pay extra when you use more than your allowance.
Pros
Cheaper for minutes and texts
Incentives offered when taking out the contract
A lot more services available from the providers
You can always use your phone despite your allowance
Cons
In a contract for a set amount of time
Need to pass a credit check
You will usually need to pay line rental if you choose to take out a contract phone, better deals are available if you pay a higher line rental or if you have the contract for longer such as 18 months instead of 12 months.
If you take out a contract phone you can also obtain insurance cover from the same company making it easier to make a claim if you have to.
In order to make the most out of your contract, shop around and find the best suited deal for you and compare prices from a number of providers.
So whether it is a PAYG or a contract mobile phone you want, shop around for your perfect deal.
