Pre-Paid Vs. Contract Phone IPhone Plans - The Pros And Cons

If you're in the market for a new iPhone, then you're probably already prepared to make a pretty big initial outlay.

Either by going for a PAYG iPhone, meaning you have to pay up front for the cost of the hand set before topping it up with credit, or choosing a contract plan, meaning you might not have such a hefty initial charge, but will still more than pay for the price of the phone over the course of the contract, there is still a lot of money at stake.

But what's the best way to go; pre-paid or contract? The truth is that these plans are designed for different kinds of phone users, and so a plan that's good for one customer might not be ideal for another. So, if you're trying to make the best decision about purchasing your new iPhone, then you might want to keep reading to get the truth about which plans have which pluses and minuses...

Pre-Paid Plans... The Good...

With a pre-paid or PAYG plan you buy the credit that you need in any of a variety of ways and then use your phone until the credit that you've bought has run out, at which point you purchase more credit. This is a great idea for people who are budget conscious, because you know exactly how much money you're spending and you're not going to get surprised with a monthly bill.

It's also good for kid's phones, as a parent can easily control how much money is spent. Finally, pre-paid plans are great for people who don't call often and who would never use the amount of calling minutes that are supplied with most contract plans.

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Pre-Paid Plans... The Bad...

Pre-paid plans aren't a great idea for people who frequently use their phones, as per minute service tends to be more expensive than with a contract. Also, they tend to have large upfront costs because you're not committed to a contract and therefore can't pay for a phone over monthly payments, you must instead pay the full price of the phone up front.

Contract Phones... The Good...

If you have fairly regular phone habits and you make around the same amount of calls per month, or send the same amount of text messages, then a contract phone is a good idea for you. There is a lot of convenience in a contract phone - you don't need to worry about running out of credit.

Plus, you tend to be able to get a new mobile device (such as an iPhone) without paying the full cost of the phone up front, but by paying a little extra each month to cover the cost of the phone instead.

Contract Phones... The Bad...

Contract phones don't have much flexibility, unused minutes are not refunded, and extra minutes tend to come at premium prices. Plus, contracts tend to be pretty long term, at least twelve months, and more usually for two years. Leaving a contract before it has expired can mean paying a pretty hefty penalty fee.

  Phil Turner

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Phil Turner hardly uses his phone at all so a PAYG iPhone makes much more sense for him than a contract one.