Guide to Phone Contract Basics

Guide to Phone Contract Basics
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When it comes to mobile phone deals, pay monthly contracts come at the top as the best option for majority of mobile users in the UK. As opposed to other options like Sim only deals and pay as you go (PAYG), phone contracts offer a few advantages that make it more attractive for most users. If you’re thinking of getting a phone contract, below is a quick guide to ensure that you’re making the right decision:

What is a phone contract?

A traditional phone contract, as the name suggests, offers you a handset choice and a phone tariff. Phone contracts, in general, last for 24 months at a fixed monthly fee that will cover the cost of your phone and phone services. If you’re after the latest handset, for example, expect for your monthly fee to be higher than if you opt for a cheaper handset. The same is true if you opt for more generous allowances for your call, text and data services.

What are advantages?

Phone contracts are popular among subscribers for a number of advantages. At the top of the list is the free handset option. If you want to avail the latest handset, for instance, but don’t have the cash to buy the phone upfront, you can subsidize the cost with a phone contract. The phone contract lets you pay for it over a course of 24 months hence less xxxxxxxxx financially.

Another advantage is the cheaper rates on call, text and data services. Granted that you chose the right phone tariff, you can expect to earn huge savings on your phone bill over time. Phone contracts are especially suitable for heavy mobile users. As opposed to paying for your phone services on the go or in advice like with pay as you go (PAYG) deals, phone contracts let you enjoy services at a more affordable rate because they are part of a bundle.

Some providers also offer customers with an additional incentive in the form of free gifts. To lure potential subscribers to sign up, you can choose a free gift on top of your handset and phone bundle. Available free gifts include laptops, tablets, plasma TVs and game consoles among others.

What are the disadvantages?

While the advantages may be attractive, phone contracts are not without its disadvantages. In fact, this type of phone deal may cost you financially especially if you chose the wrong phone contract plan.

One disadvantage with phone contracts has something to do with overspending on your phone bill. If you have the wrong plan, there’s a tendency that every excess call, text or data usage you may have acquired more than your monthly allowance will rack up your bills in the end. Most subscribers, in fact, overspend on their phone bill because of excessive data usage according to a recent study. To avoid making the same mistake, it’s important to choose your phone deal as thoroughly as you can. Match it with your needs accordingly and you shouldn’t have to pay more than what you need.

Is a Phone Contract Right for You?

Phone contracts may offer you more freedom with your handset selection but it isn’t always the best option for everyone. People with bad credit, for example, may be better off opting for phone contract alternatives. When you have bad credit and you apply for a phone contract from major providers, rejection is a high likelihood considering your possible history for delayed payment, non-payment, ccjs or bankruptcy. Otherwise, you may want to check bad credit mobile phone deals which may be more costly but are easier to get approved.

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