Is a Mobile Phone Contract For You?

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With surveys claiming that several billions of sterling pounds are overspent on phone contract deals every year, it’s no surprise why specialists and experts would rather recommend subscribers to go prepaid instead. Prepaid or Pay As You Go (PAYG) deals do not hook you to a lengthy contract. You only pay a fee when you need to top up your phone with credit. In most cases, PAYG deals allow you to have more control on your bill thereby earning you huge savings in the long run.

While inexpensive and highly recommended, PAYG deals are not always the best option for everyone. At the end of the day, if you want to save money, you need to find a deal most suited for your needs. Most often than not, a phone contract deal may be your best bet.

How do phone contracts work?

Unlike PAYG deals, phone contracts will tie you up to a lengthy contract. The typical contract length in the UK is 24 months. Providers also offer 12 or 18-month contract phone deal options for you to choose from. In any case, you will be paying a monthly fee for your phone service and handset. Fees vary from deal to deal, which can start from as low as £8 up to £36 per month.

One of the biggest disadvantages of a phone contract is the monthly fee, which can spike up with hidden fees and related charges. For users who use up call, text and data services beyond what their plan offers, there are also additional charges at regular rates. This is one of the reasons why subscribers overspend.

In terms of advantages, phone contract deals are convenient and it can also save you money provided that you picked the right phone plan. When choosing a deal, it’s very important to find just the right balance between your handset choice and your phone tariff. If you want a cheaper monthly fee, stick with cheaper handsets. But don’t be stingy with your phone service plan especially if you’re a heavy mobile phone user.

For more tips and tricks on how to choose your contract phone deal right, click here.

Is it for you?

One of the chief reasons why plenty of customers are applying for a phone contract deal is because of the handset offer. Unlike with PAYG and other types of phone deals, you get to choose a Smartphone as part of the phone contract plan. If you’re the type of consumer who wants to own the latest handset year after year, applying for a contract phone deal makes sense. Provided that you can afford the monthly fee and your plan is perfect for your monthly usage, you’re on the right track. Your phone service rates are also cheaper thanks to the bundle offer. Even with the bundle, however, it’s still very important keep your usage to a minimum or within your plan’s allowance offers to avoid additional charges.

If you’re a light user who doesn’t really need to own the latest handset, on one hand, you may save more money in the long run with a PAYG or SIM only deal. You don’t even have to worry about any monthly fees anymore. You’ll only spend money when needed but then you can’t really rely on your phone for emergencies. You’ll have to make sure to top up first so you can use your phone for call, text and data services.

Whether you’re choosing a contract phone plan or a PAYG deal, the key is to find a deal that will sit well with your budget and needs.