Choosing Between Phone Contracts Vs. Pay As You Go

Some say phone contracts are the best if you want the latest handset and competitive rates on your call, text and data services. Others are saying to ditch the contract and opt for Pay As You Go because of the greater control you have on your phone bill. If you’re like most people who don’t know which of the two is the best option for you, which advice should you follow?

To help you better understand your options, here is a quick comparison and guide about phone contracts and Pay As You Go deals.

What are phone contracts?

Phone contracts are attractive for customers who want the latest handset because the deal offers you a choice of handset with a bundle plan. This means that you don’t need to buy a Smartphone upfront. You can spread the cost instead in over 24 months, the typical contract term for these deals. In exchange for the free handset, however, you will have no other choice but to commit to a lengthy contract where you are required to pay a fixed fee per month. Make sure you pay on or before your due date. Otherwise, your credit score may be affected.

What are Pay As You Go deals?

As opposed to phone contracts, Pay As You Go deals are not associated with any contract. There’s no monthly fee to worry about. But what you do need is to buy your own handset and SIM card. You’ll also have to top up your phone with credit before you can enjoy your phone services. The best thing about Pay As You Go is the fact that you’ll have more control on your phone bill, which means huge savings in the long run. You’ll only need to top up your phone when needed but you do have to purchase your handset in cash beforehand.