subject: Which Is Better - Contract Or Payg? [print this page] Nowadays, if you want to buy a new mobile phone you will have two options of how you would like to pay for it and your usage on it (data, phone calls and texts) contract and PAYG (Pay As You Go). There are pros and cons to both of these options and the one that you eventually settle upon will entirely depend upon your personal preference. If you have no idea which one you would prefer at present though, you should sit down and consider the differences between each before making your decision.
Here are just some of the pros and cons of each that you will need to consider:
Contract
Pros
-Contract phones come with set allowances for minutes (calls), texts and data. This means that you can simply use your phone throughout the month without having to worry about topping up.
-Each month, the payment for your contract would go out of your bank account on a set date automatically, so you wouldnt need to do this manually.
-In the event of an emergency, you would be able to make a call to a friend or family member if need be without the worry of not having enough credit.
Cons
-It can be easy to go over your monthly allowances if you don't have some kind of warning system set up.
-You may end up with a costly monthly payment plan, which can have its disadvantages.
-You would need to be approved for credit, as contract forms are a form of credit, and so if you had a poor credit history you may not be approved for a contract.
PAYG
Pros
-If you don't like the idea of paying a monthly bill and want to have more control over your phone usage, PAYG would be ideal. You simply top up whenever you need to.
-A lot of networks offer PAYG deals, such as top up by 10 and get 10 worth of credit free.
-PAYG phones are often preferable for children and teenagers, as their parents can monitor their mobile phone usage.
Cons
-Should you need to contact someone in an emergency, there would be a chance that you didn't have enough credit to get in touch with them.
-Your credit can sometimes run out in the middle of a phone conversation, which can be very annoying.
-If you didnt top up regularly, you might miss out on some of the PAYG deals that are available.
by: Amy
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