Phone Contracts vs. PAYG

If you’re choosing between phone contracts and Pay As You Go (PAYG) deals and you’re confused which option is best for your needs, this quick comparison of the two types of phone deals should help.

Phone Contracts

Phone contracts or pay-monthly contracts are deals that offer a combo of your handset choice and a bundle plan. You get the handset for free in most cases but in exchange you will be hooked to a lengthy contract. The typical contract term for these deals is 24 months. This means you are required to pay a fixed monthly fee for 24 months, which basically covers your phone service usage and your handset.

PAYG

Pay As You Go or PAYG deals, on one hand, are phone deals where you need to own a handset to top-up in order to enjoy your phone services. Rather than pay for a fixed monthly fee, you’ll have greater control of your phone bill because you top-up only when needed. Once the credit of your phone is used up, you need to top-up again to make calls or send text messages. On the downside, you won’t get a new phone with PAYG deals but on the upside, you won’t have to worry about a lengthy contract or about fixed monthly fees with this type of deals.

Which is better?

As you can see, both phone deals have their pros and cons. If you’re in the process of choosing which type is better, it will have to boil down on your preference and specific needs. If you’re a heavy mobile user, for example, and you want a new handset then opting for a phone contract is a good move. If you don’t want to be bothered with monthly fixed fees and you have bad credit, sticking with a PAYG deal makes sense.