Mobile Contract vs. PAYG

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Two basic questions you need to ask in using your mobile phone is whether to get it under contract or stick to pay as you go. This guide can help you to pick the better option between the two. 

When Should You Opt for a Mobile Contract?

You use up a lot of credits rather quickly. Not only is it very inconvenient to top up your credits every time because you consume them too soon, but it could be very expensive too. If you are a heavy user and find that you spend too much on PAYG, you should consider switching to a contract in order to save more money.

You want to upgrade to a new unit every now and then. The beauty with a mobile contract is that it gives you the opportunity to switch to a new handset every 12 to 24 months, depending on the length of your contract. This allows you to enjoy the luxury of being up to date with the latest models, and it might not cost that much, because some companies are willing to give out discounts after finishing your contract.

You can’t pay for a new device upfront. One of the best things about a contract is that you can get the phone you want for free or at a subsidized price. Nowadays, smartphones are the most in demand phones, unfortunately not many of us can afford to buy them in cash. Through a contract, you can pay affordable monthly installments for a period of 18 to 24 months, during which period your phone is still capable of most functionalities that you need.

You use your phone for tasks other than calling and texting. In this modern world, you can do many things in a mobile phone aside from calls and texts, such as surfing and reading mails. In doing these tasks you’ll definitely need a steady internet connection. If wifi is not always available, it’s good to have your mobile data ready.

When Should You Opt for PAYG?

You are a light user. If you don’t make a lot of calls and texts and your monthly credits in a contract will likely go to waste, then PAYG might be your better alternative. If your usage is consistently low, then you can only load up credits that you can consume without worrying about running low.

You already have the phone that you need. If you’re not planning to purchase a new mobile, then you don’t have to worry about getting a subsidized phone.

You don’t want a long-term commitment. If you’re not comfortable being tied with a specific network for a certain period of time, you might not like being on a contract. Especially if you constantly go on out-of-country trips, a contract can cost you more expensive international rates.

You have the cash to buy a phone outright. If you need to buy a new phone and you’re one of those few fortunate individuals to buy one in cash, you can definitely save more money buying it outright compared to getting one under a contract.

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