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How to Sign a Mobile Phone Contract

By Edited Jun 22, 2016 0 0

Nearly everyone has a mobile phone nowadays. The convenience of being in constant contact, as well as being able to surf the net, listen to music, and play games is enough to convince most people that a phone is a great idea. Getting a new phone is going to set you back a fair bit of cash though. And once you've bought the phone, you still have to pay for service. Some people choose to go with a pay as you go service, which can be ideal for lighter users. But those of us that use our phones more often will find that the costs rapidly add up when we use pay as you go. If you fall in to that latter group, you're probably going to find that signing a mobile phone contract and paying monthly payments is a better way to go. It's simple, plus you'll end up saving money as long as you do things right. Today we're talking about everything you need to know about signing a mobile phone contract. So if you're just about to get a phone, or if you're paying too much with pay as you go, then keep reading to find out how to sign the best mobile contract for you.

Get the Right Calling Plan...

A mobile phone contract is going to contain a calling plan. There are plenty of different calling plans available from different mobile operators, and the trick is in choosing the one that's right for you. A calling plan has three basic parts. There will be a number of calling minutes that you can use each month, a number of text messages that you can send each month, and an amount of data that you can use each month. All of this for one monthly fee. However, it's important that you realise something: you will pay your monthly fee whether or not you use all of your calling minutes, texts and data, but, should you use more than your limits, you'll be charged extra fees. This is why getting the right plan for you is so essential, a plan that's too big and you'll be paying for services that you don't use, a plan that's too small and you'll be paying charges for going over your limits. If you've had a mobile before, you can go and look at some of your old bills to find out the average number of minutes, texts and data that you use. If you haven't, it might be a good idea to get a pay as you go plan for a month or two, so you can monitor what kind of plan you need before signing up.

Incentive Contracts...

The contracts that you see advertised most often are what are known as incentive contracts. These are contracts that give you a calling plan and include a free or discounted mobile phone. If you need a new mobile, and don't have cash to pay for one, these plans might be a great idea for you. But you must remember that the phone you are getting is not free. Compared to SIM card deals (we'll discuss those below), incentive contracts have a higher monthly payment. This is how the mobile operator can afford to give you a phone, by charging a little more each month. Basically, you are buying the phone in instalments, paying a little of the cost every month. And like most instalment plans, this does end up being a little more expensive than buying the phone up front. How much extra you pay really depends on the kind of phone you get. But if you need the phone, signing an incentive contract can be the way to go.

SIM Card Deals...

SIM card deals, or SIM only contracts, are contracts that just give you the calling plan, there's no phone included. These contracts tend to be cheaper per month, because you're not paying off the cost of the phone. If you already have a phone that you intend to use then you'll want to sign a SIM only contract. If you're willing to buy the phone up front, then again you'll want the SIM only contract. There is no difference in the calling plans available with SIM only and incentive contracts, the only difference is whether or not you want the phone.

Contract Length...

Nowadays you usually get a choice about the length of contract you sign. The standard mobile phone contract is for twenty four months. However, the law says that companies must also offer a twelve month contract, and some operators have eighteen month contracts as well. In general, the longer your contract, the cheaper you monthly price will be. But, once you're in the contract, you're in. Switching to another company or a different calling package can be difficult, and two years is a long time. You'll need to think about how long you're willing to sign up for, as well as the financial costs of each kind of contract.

Things to Remember...

This is a contract, which means that you will be expected to keep to it. You will be required to make the monthly payments, even if you don't use your phone at all, even if you're out of the country. It's imperative to make sure that you can really afford a plan before signing up. It's not impossible to leave a contract early, but it's not easy either. If you wish to break your contract you'll be charged a contract non completion fee. This is a flat rate that varies by operator, which will be multiplied by the number of months remaining in your contract. Obviously, the more months left in your contract, the more expensive it's going to be to leave the contract. And if you signed an incentive contract you may also be required to pay however much money is left on the balance of the phone you received. Leaving a contract early can end up costing a fortune, so you really do need to make sure that you sign the right contract for you.

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