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Mobile Phone Contracts VS Pay As You Go VS Sim Only Deals

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The mobile phone sector has been growing for a number of years now.
Gone are the days when we just purchased a basic handset and made our calls.
We now have more and more options, not just in styles and types of handsets, but also how we pay for our mobile phone calls.
In this article, we will take a look at various options available to mobile phone customers and what are the benefits of each of them.
The most common type of mobile phone deal is the fixed term contract.
With these types of offers you sign up for a fixed period of time and you are given the handset as part of the package.
These contracts tend to last from between 12 and 36 months and will include a combination of inclusive text messages, minutes and sometimes internet browsing.
To get a high end handset for free, you will need to sign up for a 18-36 month contract.
Anything less and you will have to pay towards the cost of the phone.
You can also get clearance contracts, which include older models of phones or handsets which have been discontinued.
These are a very popular option as you are not tied in to anything too long term.
The only problem with contracts is the fixed period.
On a 18-36 month deal, you will get a great phone, but tend to quickly become obsolete and will be found in the clearance section less than a year later.
The next option is to go for a pay as you go mobile phone.
Here, you buy the handset which is tied to a certain network.
These handset normally come with a small amount of credit - about £10.
When this runs out, you will need to top up.
This can be done on the phone, one the internet or by going to a shop which offers this service.
In the past, pay as you go mobile phone did not offer great value for money if you were a heavy user.
However, in recent times, they have go much better.
You will often a fixed number of free text messages every time you top up and some will even include free calls to a special number.
Another good thing about this type of deal is that you have full control over what you spend.
The final option you could go for would be a Sim only contract.
Sim only contracts work in the same way as mobile phone contracts.
The only difference is that you will not get a handset.
As a result, you will need to either already own a Sim free and unlocked mobile phone or you will have to buy one.
A benefit of going for a Sim only is that contracts can last for as little as 1 month.
Great if you do not want a long term commitment to just one network.
if you are not happy with your network provider, you can just cancel with 30 days notice.
When you are deciding which option to go for, you need to way up all the pluses and minuses.
Mobile phone contracts offer good value, but you are tied in long term.
Pay as you offer control over what you spend, but will have to pay a little more over the long term.
Whilst, Sim only deals offer freedom of choice and value, but you will need to already own a handset or have the money to pay for one.
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