Pros and Cons of Contract and Pay As You Go

31 Oct

When it comes to choosing a new phone, there are many factors to take into consideration; the style and make, the network and of course choice of whether it’s a contract phone or Pay As You Go (PAYG). Each has their pros and cons, but which one is right for you?


Pros Cons
Deals:Most contract phones come with a deal of some sort, whether it’s 100 free texts a month or a 100 free minutes, which can be ideal if you are someone who uses their phone a lot. Contract Length:Often phone contracts are a minimum of two years which means, if you are bored with it after a year, you’ve still got to keep it for another.
Monthly Bill:By having a monthly bill, you don’t have to worry about remembering to top up your credit when you’re low or out. Increased Costs:With a contract, you can often forget about keeping track of your phone usage, and come away with a larger bill than you had intended.
Replacements:If you accidently break your phone, with a contract you are often able to get a replacement whilst, your other one is being fixed. Credit History:Sometimes with contract phones, companies want a history of your credit, which can a nuisance if you don’t have one. This is often the case, why most people under 16 don’t have one.

It seems with a contract phone that they have the pros and cons, and really depends on what sort of person you are. If you are somebody who is great at keeping track of their money and needs their phone for work, so replacements are useful, then a contract could be just the thing you need. However, if you prefer to keep track of your money, or don’t have a credit history, then consider a PAYG as an alternative.


Pros Cons
Keeping Track:With a PAYG, you can keep track of your costs easier, and are less likely to run into any debt. However, once you are out of credit, you won’t be able to contact anyone. Damages:If you damage your PAYG, then unfortunately you’ll have to buy a new one. There are no replacement options, except ones that’ll cost you.
Starter Phone:A PAYG is a great starter phone for young people; it teaches them the value for money and gives them responsibility. Top-Up:Once you’re out of credit, you must top up if you want to continue using it. It can be a hassle if you run out of credit during the middle of a conversation.  Although, some networks offer a IOU credit scheme, which allows customers an extra £2 of credit for an emergency.
Change:If you are somebody who likes change and keeping up with the latest technology, then PAYG is a great option, because you are not limited to a period when you can change. You can just change it.
Deals:A lot of PAYG networks are offering customers more deals, such as top up £10 and will give you £5 free credit. Others offer you free gifts or money off outings.

It seems in the long run, a PAYG phone is a great option, especially for young people starting out with their first phone. It’s a great way to watch your pennies and only use what you can afford, and what’s even better is the fact more and more PAYG networks are offering their customers deals, so you can have a contract service without having the monthly contracted bills.

If you are interested in finding out more on mobile phones, or simply want some advice then visit the UK’s newest impartial mobile phone website, where you can put your feet up, because Nerd’s got it covered.

Leave a comment

Posted by on October 31, 2011 in Mobile Phones, Services


Tags: , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: