Pay As You Go Or Contract?

By Author: Neo Nashville
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When you are looking to get a new mobile phone, you basically have two options: pay as you go, or a monthly contract. But with the myriad price plans and incentives that are around to help confuse matters, how can you know which payment plan is right for you?

In this article, we shall discuss the good and bad points of each type of arrangement, in order to help you decide.

Pay as you go plans are also known as prepaid plans because you pay for any talk time that youll be using before you actually use it. There are a number of advantages to this type of arrangement. It means that you are never left with the unpleasant surprise of a huge phone bill at the end of the month, making it ideal for those who are on a bit of a tight budget.

Pay as you go phones are usually quite a bit more expensive than ones that come with a contract, which are often free. However they can work out quite a bit cheaper over time if you do not use your phone all that often. If you become dissatisfied with your service provider, you can simply pop in a sim card from another supplier, and away you go.

Per minute and per text ...
... rates are usually a bit higher with a prepaid phone than with a contract, and you could end up stranded without the ability to call or texts if you are unable to top up your phone for whatever reason.

Monthly contracts usually involve far less in the way of initial outlay, allowing you to get a far more expensive phone than you might otherwise be able to afford. The calls and texts are usually cheaper, and if you are using your phone a lot, this type of deal is usually a lot better value.

You can use your phone as much as you like with a contract, although you should be aware that you could end up with a massive bill if you do not keep an eye on your phone usage.

All in all, if you are a heavy phone user with a regular source of income, then a contract phone could well be a better option.However, if you are buying a phone for a child, dont have a huge amount of money coming in each month, or dont plan to use your phone all that much, then a pay as you go plan could be a better option.
Vodafone offer some of the newest mobiles on a range of price plans including pay as you go if you do not want a monthly contract.