by Kirsty O'Lone

Created on: October 24, 2008   Last Updated: January 31, 2009

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.

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