MOBILE PHONES (Buyers Guide)

PAYG vs. Contract

So you have found the phone for you, the question is now: how are you going to pay for it?

Well, you have 2 options: 1) pay for the phone upfront and then top up whenever you run out of credit - this is known as Pay As You Go (PAYG). 2) Take the phone on a contract where you pay a monthly fee for the phone and the package you get with it (for example 200 texts and 300 minutes). There are advantages and disadvantages of both options but you need to decide which one suit you best.

Advantages of Pay As You Go (PAYG)

Pay as you go is an option many people choose for their first phone, as you can control your spending better than on contract. You buy the phone and that's it the phone is yours, all you need to do now is top up when you run out of credit. There are deals that some network providers offer whereby you top up a certain amount a month (usually £20 or £30) and you receive unlimited texts, Orange and O2 currently offer this. Especially when it is your first phone PAYG is a good way to find out how you use your phone so that you do not waste money on added benefits you will never need.

Disadvantages of PAYG

Brand new phones tend to be very expensive and forking out all that money straight away can be hard for a lot of people. You may also find yourself in an emergency where you have no credit, leaving it pretty much useless! This is very frustrating for customers and you would have to start looking for the nearest phone box. You may also find yourself constantly running out of credit, meaning you are spending a considerable amount of money on top-ups.

Advantages of Contract phones

One way of avoiding the huge costs of a new mobile is to go on contract. Contracts vary depending on phone and provider. Unlimited minutes and texts are common nowadays and are great for people who are constantly on the phone, whether it be for business or pleasure. Credit is never a problem with contract phones, whenever you need to make a call there will be nothing stopping and you also eliminate the hassle of having to top up.

Disadvantages of Contract phones

When you take out your contract you will have benefits, an allocation of minutes and texts for the month. The problem is you can easily go over your allocation without knowing it because there is nothing to remind you that you are approaching your limit because, at the end of the day, the network providers want you to go over your limit so they can make bigger profits. When your monthly bill comes through the door, you might get a shock. One thing to look out for is the minutes you receive, double check whether they are cross-network and anytime because you can be charged heavily.

So which one is best?

As you can see there are advantages and disadvantages for both. If you use you phone for emergencies only then maybe PAYG is the better option as you can buy a cheap phone and keep it running without having to pay too much. However, if you want a new phone with all the latest features and you use it more often then a contract is the probably the way forward. Calculate the costs of having the phone to work out which is best for you.

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