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Essential Buyers Guide To Pay Monthly Phones
In a nutshell, pay monthly mobile phone contracts entail you signing up to a service provider of your choice for an agreed fixed term. The package you opt for will allow for a set amount of free services that include sending and receiving text or picture messages, making voice or video calls, accessing the internet, sending e-mails and downloading data such as music or games. Once your allowance has been reached, you will then pay the costs for each service charged by your particular provider.
Pay monthly phone contracts can last 12 months, 18 months, 24 months or 36 months. The longer the length of the contract, the more benefits you will be given. For example, a 12 month contract for £35 per month might offer 250 minutes and 100 texts free, whereas an 18 month contract might give you 300 free minutes, unlimited texts and unlimited internet access.
Choosing the perfect pay monthly mobile contract comes down to finding the right fit for your individual habits, so it's important to shop around - whether you're a text addict or need your phone for extended talk periods, there is a wide variety of packages ...
... available on the marketplace to suit your needs. While High Street retailers can be persuaded to trim a few pounds off the cost of your contract or handset if you haggle abit, research has demonstrated you could save as much as 40% by buying a monthly contract online. Be careful however when comparing online deals to look at the fine print - while on the surface you might be enticed by half price line rentals and cash-back offerings, there might be hidden drawbacks like exorbitant fees once you go over your free minutes.
The following guide will outline the pros and cons of pay monthly contracts so you can be sure to make the right decision.
Questions to consider
When weighing your options for the best pay monthly phone deal possible, it's important to ask yourself some useful questions:
1) The majority of the time, do you tend to call landlines or mobiles? This will identify the cost of calls that suits you.
2) Which mobile provider network do most of your friends use? Word of mouth referrals by people you trust can often be the most reliable way forward. Not only this, but many providers offer cheaper or free calls to people on the same network.
3) Are you interested in being offered the best and latest mobile handset or are you happy with the one you have? This will determine the type of package and length of contract you need to take.
Advantages of Pay Monthly Phones
Competitive monthly charges
By paying your chosen service provider a fixed amount each month, you will be given a package that includes a set amount of free minutes, texts and web access. The higher the price, the more free benefits are available.
Great mobile handsets
A large amount of stylish new devices such as the latest smartphones are rather pricey to afford for many people. A pay monthly fixed term contract will allow you to either get the handset free as part of your package, or at a greatly reduced price. Once your contract expires, your mobile provider will offer you a new phone upgrade to entice you to sign up for a new contract term with them.
Loyalty bonuses
Many mobile service providers offer their pay monthly customers added benefits for staying with them, such as extra free calls and texts plus discounted fees for third party events and free games.
Fuss-free call time
Pay-as-you-go phones entail you needing to top-up your call time when it expires - this can be problematic when you suddenly run out of credit at an inconvenient moment. With a pay monthly contract, you simply have the agreed fee debited from your account every month.
Disadvantages of Pay Monthly Mobile Contracts
Fixed term contract
Pay monthly phone contracts are binding; you will be locked into a particular network provider for a set term or will have to buy out the contract at a significant cost if you want to cancel. People such as students who don't want this kind of responsibility or those who might want to change to a service provider with a more appealing offer could find this frustrating.
Set monthly fees
The monthly cost of your contract will need to be paid regardless of whether you use the free minutes, texts and other services included in the package. Research conducted by comparison company Omnio has revealed that 82% of pay monthly phone customers admitted they hardly ever get close to using up their allotted amounts of services, and 47% used less than half of the free texts and minutes included in their contract package. Bearing this in mind, it's wise to opt for a cheaper mobile deal initially instead of succumbing to the lure of tons of free minutes and other services (for a higher fee) than what you will realistically use. You can always go for a contract upgrade at a later stage - some mobile providers even offer to analyse your monthly usage and contact you if they think you're paying too much or too little for your contract so that you can make the best savings possible.
Credit rating
As with most set contracts, your chosen mobile provider might do a credit check and deem you a high risk customer in terms of being able to meet monthly payments due to a low credit score. In this case you could be denied a contract or required to pay an extra insurance cost, even though you're able to meet the monthly fee.
The above information gives you the need-to-know facts about pay monthly phones. Above all, be sure to weigh the different package offerings available against your individual needs as a mobile user, to ensure you find the contract that fits best.
Peter Williams is a mobile communications consultant and retailer of pay monthly phones.
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