Pay as you go Smartphones. Are They any Good?

When you look for a new smartphone there are a couple of common ways of doing it.

The first one is to pay for it on a monthly contract. This is where you pay a fee each month for the plan that most suits your needs. The other approach is to take it on a pay as you go deal. With this type of arrangement you pay for it as you spend the credit. These are the main points to bear in mind:

1. Freedom to cancel when you want to. The big drawback for a lot of people when they look at contracts for smartphones is that you are tied into the deal for a relatively long period of time. This means that you are stuck on the same plan even if it no longer suits you in the future. With a pay as you go smartphone you can change phones or networks really easily. This is the ideal way of doing things if you don’t want to tie yourself down to something or if you aren’t sure what your future plans are going to be.

2. Top up the credit as you need it. There may be some months in which you don’t use the phone at all and others in which you use it a lot. With a contract plan you get charged the same basic cost every month, whereas a pay as you go deal allows you to spend what you need when you need it. This makes it a good choice if you are an erratic phone user who doesn’t always use it in the same way every month.

3. Higher initial cost. There is no doubt that buying a pay as you go smartphone will cost you more at the outset. Monthly plans often give great phones as part of the deal either cheaply or even free. This is because the company knows that they are getting regular payments from you for a long time. With a pay as you go phone you can expect to pay a higher initial fee for the handset.

4. Periods when you don’t use it much. You may go fairly long without having to use your smartphone, and it seems a shame to keep on paying every month while it is gathering dust. This is where having a pay as you go option can save you money; as you simply stop topping it up while you aren’t using it. There will normally be a cut off period, at which point your credit needs to be used or you will lose it, however this is always a fairly long time from when you last charged the phone.

Whatever option you choose, the main issue is to find both a phone and a method of payment that is suitable. It pays to shop around and find a deal that is going to meet all aspects of your requirements, rather than regret having bought it hastily at some point in the future.


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