Saving money tips: PAYG Vs Pay Monthly Contract

paygMost major network would praise the benefits of a pay monthly contract over a pay as you go option. However are there claims that users save money and are offered greater benefits true. Well we have decided to give you our view on the whole situation so you can have a balanced view. Making the right choice could save you quite a bit of money over the average 2 years a mobile contract now lasts.

The main advantage to a pay as you go plans is the fact that you are not tied to a long term commitment. This is especially important for those whose circumstances are subject to change. If you will be moving, or maybe have a temporary job, or may be returning to school, a pay monthly plan may not be something you want to get involved with.

So far as costs, with most phones cost in the range of £300 to over £500 and seem only to be on the increase, it takes a lot of savings or many months to afford this level of cost. Most pay monthly mobile contracts are only a little bit more expensive than the pay as you go ones. Most of these, however, either have free phones for signing the contract, or at least a very inexpensive one.

One example is the HTC One phone. The customer does have to pay for the phone, even with the pay monthly contract. However, the phone costs only £29 and the monthly contract fee is on £32, which includes 500 minutes, 5,000 texts, and all the data you can eat. With the pay as you go option, the phone cost £549.99 and the usage costs are 30p a minute, 12p a text, £1 per day max. It’s plain to see that the monthly contract cost will be much less if you would use these max limits. The cost of PAYG is exponentially more than a basic contract.

However, If your circumstances are apt to change, or even if they feel insecure about your future, then the pay as you go plan might be preferable, but it is not cheaper. Light users can actually save money on pay as you go but most people would find there usage very restricted. To save money on the above contract PAYG customers would be limited to around 15 minutes talk time, 38 text and no data per month. PAYG packages are getting better and can help you get more usage then stated but you will still be very restricted compared to a pay monthly user. If you are only using your mobile to receive calls or are not using your phone for large periods of months at a time PAYG can have its benefits here.

Overall pay monthly contract look set to be most people best and cheapest option when getting a mobile phone contract today.

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