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RSS FeedWhich is a better type of cell phone plan: Pay as you go or a monthly contract plan?
Results so far:
| As You Go | 56% | 158 votes | Total: 283 votes | |
| Contract | 44% | 125 votes |
As You Go
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Add to FavoritesWhen selecting a cell phone, a prepaid cell phone provides several benefits over conventional cell phone service that requires a service contract. With a prepaid cell phone, you only pay for what you use, putting the consumer in control of their usage and cost, rather than being contractually obligating the consumer for a lengthy period. Plus, a prepaid phone is accessible to anyone: there are no stringent requirements to get a prepaid cell phone. These benefits provide a greater flexibility to the consumer than conventional contract-based cell phone service from major companies.
The cost of the prepaid phone depends only on your usage. If one were to sign a contract for cell phone service, the cost would be set regardless of how much you use the phone, and these contracts are often costly to enter and maintain. If a person uses their phone infrequently, this can be an inefficient use of their money for a necessity. With a prepaid cell phone, your usage defines the cost of the bill. If you hardly use your phone at all in a given month, it will cost you very little. Nothing goes to waste because you only pay for what you use.
This also puts the consumer in a position of control one doesn't have under a cell phone contract. There is no obligation other than to pay for the minutes used. A contract obligates the consumer to use said phone service for a given period (usually about a year to two years) and pay for that service each month until the contract expires. Plus, if the customer wishes to retain the service past the contract, a new contract may incur additional costs, either through application/renewal fees or increased monthly rates by the vendor. Stiff penalties must be paid if a customer wants to break the contract early. A prepaid phone, meanwhile, can be used indefinitely, and can be abandoned or restored if the customer wishes at any point.
Finally, a prepaid phone is more accessible to all consumers. To get a cell phone under a contracted service, you need proof of residence, citizenship and various other requirements. For a prepaid phone, all you need to do is make an initial payment for the phone and service, and the phone is yours. No documentation is required.
Since their advent, cell phones service has typically been provided under contract by major providers. However, the advent of prepaid cell phones provides consumers with a mode of communication that has respective advantages of their own.
Learn more about this author, Steven Gomez.
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Contract
Choosing whether a pay as you go phone or a contract phone is right for you depends on a number of factors, most importantly how often you use your phone and what for. Personally I feel that having a contract phone is best as I do use my phone fairly regularly.
With a contract phone you pay a set amount per month for so many minutes and texts and are charged a small amount per minute or text if you go over these limits. The amount you pay per minute or text on a contract plan is usually much lower than what you would pay if you were on a pay as you talk plan making a contract better value for money.
Usually when you take out a contract plan you will receive a modern phone free of charge and every time your minimum term runs out you will be offered an upgrade. With every upgrade you can either choose a new phone or money off your price plan if you are happy with your current handset. If keeping up with technology is important to you then a contract is most certainly your best option, as buying the latest handsets on a pay as you go plan can cost you a small fortune.
Another great benefit of contract phones is that you have piece of mind with them, if anything ever goes wrong with your phone you simply call your provider up and they will help you sort the problem. On a pay as you go plan you can spend ages waiting to speak to an actual person only to be told that you will have to pay to get your phone fixed, however if you are on a contract you can take your phone back to the store to have it repaired and you will usually get a phone on loan to use while yours is being fixed.
There are few price plan options with pay as you go and you will likely find it difficult to find a plan to suit your needs, however with a contract there are a variety of plans to choose from so you can get just the right amount of minutes and texts to suit your needs. With many contract providers you can also add extras like internet access to your plan and set up calling groups to make calls to people you call often cheaper or even free. With most of the leading contract providers you are not tied to one particular plan either so if you suddenly find that you are talking or texting more than usual simply call your provider and ask them to change your plan to one that suits you better.
There are of course reasons to have a pay as you go phone, the main reason some people chose the pre paid option is that you are fully in control of how much you spend. Because you can only use the credit you have already purchased for your phone there are no big bills to worry about, this option is especially useful if the phone is for a child as parents will not be left to cover a large bill that the child cant afford. Also if you simply don't use your phone that much you may find that a pay as you go phone is the best option, after all there is no point in paying for minutes and texts that you are not going to use.
Although I do think that pay as you go phones are suitable for some people, for the majority of us a contract plan is the best option. With a contract you will almost certainly save money each month and have piece of mind that should anything go wrong with your phone it will be fixed with minimal fuss.
Learn more about this author, Kirsty O'Lone.
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