Comparing Mobile Contract and PAYG

Benefits of a Mobile Contract Over PAYG

There are usually more credits included. Oftentimes, a mobile contract has more credits included in the fixed monthly payments, making the overall rates of services that much cheaper as compared to PAYG. If you’re a heavy user, you’d most likely be able to cut costs through unlimited packages.

You don’t need to reload. The convenience of a mobile contract mainly lies with the fact that you don’t have to top up every time you use up your credits. This means you don’t have to worry about running out whenever you needed to make an important phone call. With a phone contract, you just use your network’s services continuously and pay for your usage at the end of the month.

The cost of the handset is included in your monthly payments. With a contract, you don’t need to have a separate phone, which can be a real lifesaver when you don’t have the money to buy one outright. Assuming your credit is pretty good, you can pick any handset that you like, and choose the monthly services included. Most providers already have set monthly payments for each type of unit and the amount of credits to go with it, but you may still be allowed to customise the package based on your actual usage.

There may be freebies or discounts awarded at the end of the contract. Most of the time, carriers offer rewards when nearing the end of the contract in order to keep their loyal customers. If you’ve been timely with your monthly payments, chances are you’ll be rewarded in the form of free credits or discounts.

Benefits of PAYG over a Mobile Contract

You only pay for what you use. What commonly puts people off from applying for a contract is the notion that you are paying in excess of your actual usage. For instance, if your plan includes 60 minutes and 200 text credits, but you were only able to consume half of both, you would still have to pay for the agreed monthly bill. However, this may only be a problem if you’re such a light user, in which case, PAYG may be a more suitable option for you.

There’s no long term commitment involved. If you don’t find enjoyment in sticking with one network, perhaps you’ll be happier using your mobile on a pay as you go basis. This is exactly the case when your job involves going abroad most of the time. PAYG allows you to just purchase a prepaid sim card from that country so you can save up on roaming expenses.

You get to keep your existing phone or change devices any time. If being up to date with the latest handsets is what thrills you the most, then PAYG may be a better idea than a mobile contract. You can switch handsets/networks as often as you like, and you don’t have to finish off the whole 24 months before you can avail a new phone.