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Pay-As-You-Go vs. Contract Plans

Pay-As-You-Go vs. Contract Plans

One of the main decisions that cell phone users face is to choose between a pay-as-you-go and to get a contract option for their cell phone. In some cases, even after you have opted for one of them, you may still wonder if it was the right choice and may consider switching. A lot of users don’t know the exact implications of these two options. Once you understand the details and features available, there is a good chance that you will know which is the best option for your needs. If you are looking for a new cell phone or you want to renew the terms of your current contract, it is advisable to take a look at the options first. We’ll go through some key details that will help you to choose between pay-as-you-go and contract plans.

Pay-As-You-Go Plans

The main advantage of a pay-as-you-go solution is that it will allow you to avoid long term contracts. You don’t need to be concerned about having to stay with the same provider for a long time. In addition, there are no termination fees involved in case you decide to switch to a different provider. With a pay-as-you-go plan, you can buy the amount of credit that you need and you can add more at any stage. Since you can get only what you need instead of paying for time that you may not even use, pay-as-you go could be the most convenient option in many cases. If you don’t use your phone that much and don’t need a lot of airtime, a pay-as-you-go plan may be the best choice.

Contract Plans

The majority of users have heard about contract plans. Generally, under these plans you are required to stay with one provider for two years. If you decide that you want to change and you leave your company before the agreed period of time, you will have to pay a penalty for breaking the contract. This can be a hassle for those who need to move out of the country or for anyone who simply wants to move to a different provider. On the other hand, one of the advantages of a contract plan is that in general, it allows you to add multiple lines for other people in your household. This can help you to save money on the monthly cost.

Usually, contracts don’t offer a lot of flexibility in terms of the amount of minutes that are used and you may have to pay a premium rate if you go above the amount of time that you get assigned on a monthly basis. In addition, there are cases in which you may lose minutes that have not been used, although sometimes, you may have the possibility of carrying them to the next month. When you agree to a new contract, you may get discounts on your phone and special offers on your monthly contract fee. If you use your phone a lot and don’t want to worry about purchasing additional time, a contract plan would be the most convenient option.


In the end, the choice between a contract plan and a pay-as-you-go solution depends on how often you use your phone. If you only use your phone once in a while, mainly to receive calls, or for emergencies, the pay-as-you-go route would be the most practical one. However, if you use you are constantly making calls and sending texts, a monthly contract plan would be the ideal solution. Just make sure that you read the all the terms and conditions before signing the contract.

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