In today’s digital age, mobile phones are no longer luxuries but necessities. From quick and convenient communication to internet browsing, mobile phones have become a tool for everyday use. In the UK, millions have mobiles phones. In fact, statistics show phone ownership now stands at 93%. For majority of users, contract mobile phones are one of the best ways to enjoy competitive rates on calls, texts and data usage. It is also a great way to avail up to date handsets you cannot afford to pay upfront otherwise.
If you’re in the market for a mobile phone contract, here is your smart guide to know whether it is the right option for you or not:
What are mobile phone contracts?
Before you can compare your options, it is imperative to understand what and how mobile phone contracts work. While it is what most consumers prefer, you must keep in mind that it isn’t always the best option for everyone. What exactly are mobile phone contracts?
Mobile phone contracts, as the name suggests, mean that you are going to get a handset along with your phone bundle which you need to pay for a fixed amount of time. In general, phone contracts in the UK are set to 12 or 24 months. The monthly fee basically covers the cost of the phone of your choices on top of the rates for your minutes, texts and data plan. Depending on your handset choice and phone bundle plan, the monthly fee can vary from deal to deal.
To find the most affordable options in the market today, it is your job as consumer to find the most appropriate options for your needs and financial circumstances.
What are the advantages?
Phone contracts are popular for good reasons. If you’re especially a heavy mobile phone user who relies on your phone for your everyday communication and internet browsing needs, getting a phone contract makes good financial sense. With the right bundle for your needs, you can expect to enjoy cheaper rates on your minutes, texts and data usage as opposed to paying on the go.
If you wanted to get ahold of the latest handset in the market, getting a phone contract is one of the best ways to go about it. Rather than pay for the handset upfront, a phone contract lets you subsidize the phone over the course of the contract allowing you to afford the handset that you want without breaking the bank.
With competition among providers getting stiffer, another advantage that sets phone contracts apart from other phone deal options is the lure of free gifts. Many providers have started to offer incentives in the form of a free gift to convince consumers to sign up. Some of the free gifts you can choose from include plasma TVs, tablets, laptops and other electronic devices.
What are the disadvantages?
While advantageous in many occasions, phone contracts also have its share of disadvantages. Again, it helps to remember that the option is not always best for everyone.
One instance that a phone contract can be disadvantageous is if you pick the wrong bundle for example. If you’re a light user and you signed up for a plan that offers more minutes, texts and data than what you usually need then you may end up paying for something you’re not even using.
You also have to remember that phone contracts mean you’ll be hooked to a lengthy contract. Unlike with PAYG where you only need to pay when you use the service, phone contracts require you to pay a hefty monthly fee which may also include hidden and other extra charges that can rack up your bill even more. Click here for further comparisons between PAYG and other phone contract deals.
Finally, phone contracts aren’t always the best option for people with bad credit. While there are bad credit mobile phones available in the market today, it pays to weigh in the advantages and disadvantages carefully and thoroughly before signing the dotted line. Remember that another delayed payment can hurt your already bad credit score even more.
Is it for you?
To know if a phone contract is the right option for you at the end of the day, it all boils down to your financial situation and personal phone usage needs. If you can afford the monthly fee and you found a bundle that meets your needs to a tee then there’s getting a phone contract is a reasonable option. Conversely, it may be safer to stick with no contract options at the moment if you know that the disadvantages outweigh the advantages in the end.