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Mobile Contract or Pay As You Go?

By Edited Feb 13, 2014 0 0

PAYG Vs Contract Mobiles

Wondering what's the best way to get mobile phone service? Your two basic options are either signing up for a mobile contract, or getting a pay as you go plan. Today we're talking about the pros and cons of each of these options, and the kind of people that benefit from them, plus, we'll even tell you the best operators to check out. So, if you're not sure how you want your service, keep reading for more info....

Pay as You Go Plans...

These are simple. You go to an operator and get a SIM card, and then load as much credit as you want on your phone. You can get credit direct from the mobile operator, buy it online, get it through some cash machines, or even buy it in high street shops. You then use your phone as you wish, but every time you use your phone credit is deducted from your account. Once the credit is gone you won't be able to use your phone, though you can receive calls and texts, and you'll need to put more credit on. Easy. The down sides of pay as you go are that rates tend to be higher than on contracts. Plus, running out of credit can be a pain, especially if you're in the middle of an important phone call. However, there are some benefits too. You can easily control your spending, and you'll only ever be paying for services that you actually use, unlike with contracts where you'll have to pay the same monthly fee whatever happens. Also, some people can't sign contracts, usually because they fail the required credit checks, in which case pay as you go is the only option.

Customers for Pay as You Go...

There are certain people that benefit from these plans. Light phone users usually save money on pay as you go, even though rates are higher. This is because light phone users rarely use all the minutes, texts and data included in a monthly contract, and therefore often end up paying for services that they don't use. This is a popular option for kids phones, since it stops the little ones running up huge phone bills. Finally, if you prefer connecting to mobile internet through a faster WiFi connection, rather than through 3G, then you might benefit from pay as you go. Mobile contracts tend to include expensive data plans, and if you're going to be using WiFi instead, then you should probably consider skipping the contract and getting pay as you go.

Best PAYG Operator: Tesco Mobile UK

When it comes to choosing an operator, Tesco Mobile UK offers the best PAYG deals. Not only do they have cheap prices, but Tesco Mobile UK also has a triple credit programme, where once a month they will triple the amount of credit you put on the phone. So if you top up with twenty pounds, you'll actually get sixty pounds of credit. That's a pretty amazing deal...

Mobile Contracts...

With mobile contract you sign a contract with a mobile operator for a certain length of time. You'll choose a calling plan which will give you a set of limits for the amount of calling minutes, text messages and mobile data that you can use each month for a set monthly fee. And then you just use your mobile. The down side to using a contract to get service is that you have to choose a calling plan very carefully. If the plan is too big, you won't come close to using your limits, and will end up paying for services that you don't use, since you have to pay the same monthly price anyway. If your plan is too small, you'll have to pay expensive extra charges for breaking your contract limits. Plus, you have to stay with the operator for the length of the contract, usually two  years, so there's no switching operators to get a better deal. However, you'll never lose service with a contract because you can't run out of credit, and for average or high phone users, prices on contracts are going to be much cheaper than on pay as you go.

Is PAYG Right for You...

If you're more than a light user you're going to save money by having a mobile contract, especially if you're a big mobile data user over 3G. And anyone looking for reliability will get that with a contract, since there's no loss of service. Finally, contracts just offer convenience. There's no worrying about topping up with credit. You'll receive a monthly bill that you can pay through direct deposit and there's nothing else to think about.

Best Contract Operators...

The best contract operator really depends on what you're looking for. If you want a big contract with high monthly limits, then T-Mobile has the best deals. They even have a completely unlimited contract that means you can use as many calling minutes and text messages and as much mobile data as you want for a monthly fee. Smaller users should look to Vodafone, since they tend to have the cheapest contracts with low monthly limits. Many of Vodafone's contracts also contain unlimited text messages as well. For the best mobile data prices, then Three is the operator of choice. They have the cheapest mobile data deals, plus they have truly unlimited data. This means that the company will never slow down your mobile data speeds if they think that you're using too much data. For business deals, O2 is the place to be. They offer specific business calling plans that are designed to meet the specialised needs of business customers. Finally, if you're a frequent traveller or international caller then look at deals with Orange. Orange has the best mobile roaming charges as well as the cheapest international calling prices. Which operator you go with is up to you, but you should definitely comparison shop to get the best deals.

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