Pay as you go or contract?

In the world of cell phones, there are basically two ways of paying for calls - before you make them, and after. Both have their advantages and disadvantages, so it really depends on your personal circumstances as to which one 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.

You usually have to pay a bit more up front to get a pay as you go phone, but they can work out to be cheaper in the long run if you are not a heavy phone user. Another advantage of prepaid plans is that, because you are not tied into a contract, you are free to walk away at any time.

However, the calls themselves are usually more expensive with a pay as you go contract, and if you cant afford to buy credits the week before pay day, then you will be unable to make outgoing calls or send texts, which could be very frustrating in some circumstances.

You normally get a free or discounted handset when you go for a contract phone, and the calls and texts can often be a lot cheaper. However, a typical phone contract can last between a year and two years, so if you want to get out of it at any point, you may have to pay a substantial fee.

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.

All in all, if you are a heavy phone user with a regular source of income, then a contract phone could well be a better option.However, if you are buying a phone for a child, dont have a huge amount of money coming in each month, or dont plan to use your phone all that much, then a pay as you go plan could be a better option.

Vodafone offer some of the newest mobiles on a range of price plans including pay as you go if you do not want a monthly contract.