Pre paid or contract?

When you are looking to get a new mobile phone, you basically have two options: pay as you go, or a monthly contract. But with the myriad price plans and incentives that are around to help confuse matters, how can you know which payment plan is right for you?

In this article, we shall discuss the good and bad points of each type of arrangement, in order to help you decide.

Prepaid plans, also commonly referred to as pay as you go plans, are so called because you have to buy phone credits before you can use your phone for outgoing calls or texts. This type of set up has a number of advantages. If you get a prepaid phone, you never have to face a huge phone bill, or indeed any type of bill, at the end of the month.

Although the initial outlay for the phone and sim card is usually quite a bit more than with a contract plan, it can work out a lot cheaper in the long run if you dont end up using your phone that much. There is also no obligation to keep using the same supplier, so if you get a new phone or want to change networks, then you can do so without having to pay a hefty termination fee.

The call costs are typically higher with a prepaid phone, and you could be left unable to make calls or send texts if you run out of credit and are unable to purchase more credit for one reason or another.

Monthly contracts usually involve far less in the way of initial outlay, allowing you to get a far more expensive phone than you might otherwise be able to afford. The calls and texts are usually cheaper, and if you are using your phone a lot, this type of deal is usually a lot better value.

With a contract, you can use your phone as much as you like without incurring any restrictions, although this can be a double edged sword, as you might end up with a huge bill if you are not careful.

So, if you have a reasonable level of income and plan to use your phone a lot, then you would probably be better off with a contract phone. However, if you have unsteady finances, or do not plan on using your phone all that much, then a pre payment plan could be the way to go.

About the Author:
Vodafone offer a huge range of phones and price plans. If you like smart phones, you will love the Samsung Jet with its fast internet for express browsing and downloads.