Mobile Phones: Pay-as-you-go vs. Contract

| August 7, 2013

Mobile PhoneIf you’re over the age of 25, chances are you’re signed into a contract with one of the main mobile phone service providers. But just because we’re bombarded by advertisements for these companies every day and are offered the newest phones with all the latest technology doesn’t necessarily mean that they offer the best deals. By taking some time to reassess your relationship with your mobile phone you could be making big savings every month.

If you are in need of a new phone and use your device a lot for calling, texting and browsing the internet then a contract is probably your best choice. But make sure you shop around a lot to find the best deals. Think about how much you really use your phone too ? unlimited deals may seem like the best value, but if you only really use your phone to text, for example, you could find a cheaper tariff without unneeded unlimited minutes. Think twice before renewing your contract too ? every provider offers a better deal for new customers, and it’s easy to port your number across to another network. To get the best deal, leave your old network behind ? or at least threaten to and see if they can match their competitors’ deals.

These days, many money-conscious adults are realising that they can save a surprising amount of money by switching to pay-as-you-go. While not a great option for those buying a new phone, unless you are happy with a basic device or prepared to fork out over a hundred pounds for something with a decent amount of features, pay-as-you-go tariffs are great for those who are happy with their phones but have reached the end of their contracts. Instead of renewing your contract in exchange for the latest phone, why not stick with your old one and switch to a pay-as-you-go tariff? Many providers such as Giffgaff offer unlimited data options at a fraction of the price of the leading networks, so you can still enjoy all the features of your smart phone and make great savings too. There are also lots of fantastic deals available with a pay-as-you-go SIM, from free text bundles to free calls to users on the same network ? so keep your eye out for current promotions and ways to save money.

Make a lot of international calls? Whether you’re on contract or pay-as-you-go, calling other countries is a sure-fire way of running up a huge bill. With contract phones, ask your network about international calling bundles. These are optional extras that you can add on to your tariff to make calling abroad far better value for money. Considering switching to pay-as-you-go? Many networks offer great deals on international calls too. For example, you can enjoy cheap calls to USA with Lebara, with rates starting from as little as 6p a minute to both landlines and mobiles in Northern America. Such networks also offer cheap rates to countries like India, Pakistan, China, Japan and more ? so they’re great for those with friends and family across the world.

If you’re trying to save money and cut down on your monthly bills, take some time to assess the pros and cons of contract vs. pay-as-you-go mobile phones to work out which one is best for you.

Mobile Phones: Pay-as-you-go vs. Contract

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