Merits and demerits of applying for cheap phone contracts


With over 93% households in the UK owning a mobile phone, it doesn’t take nuclear science for one to understand why mobile phone contracts are very popular. There is no shortage of network providers in the UK jostling to offer UK citizens cheap phone contracts with the sole aim of romping in as many customers as possible. If you are still torn between going for mobile phone contracts or Pay As You Go (PAYG) plan, this article aims to shed light on some of the merits of going for phone contracts as well as the demerits of the same. The idea is to help you make an informed decision while understanding why phone contracts continue to enjoy immense popularity not only in the UK but also other parts of the globe.

Minutes, texts and data

The moment you apply for a phone contract with a given network provider in the UK, you get access to a given set limit of number of free minutes, texts and even data bundles to use in a given month. The merit of this is that the amount you pay for these texts, minutes and data is relatively cheaper as compared to the rate you pay per minute when you are on the Pay As You Go (PAYG) plan. You get to enjoy minutes, data and texts at a relatively cheaper price.

Mobile handsets

If you are itching to get your hands on the latest handset in town, a mobile phone contract gives you the opportunity to get access to the latest handset without having to pay for it upfront. Generally, network providers have diverse mobile handsets from different manufacturers and you will therefore be spoilt for choice on the kind of handset you want. It doesn’t matter whether you yearn for an iPhone, Samsung galaxy, HTC, Nokia, Microsoft, LG or any other phone model. A phone contract gives you limitless choices.

No interruptions

If you are a heavy user or use your phone regularly for business purposes, a phone contract gives you the freedom to do so without wondering about disruptions. When you are on Pay As You Go (PAYG) you have to load your phone every now and then to make phone calls and this can cause disruptions to your business dealings or when you want to make an emergency phone.

In as much as all the aforementioned benefits are good, applying for a phone contract also comes with a set of demerits. For one, you are locked into the contract for a given number of months say 12 or 18 months or whatever period you choose. The disadvantage is that should you want to opt out, you cannot because of the huge cancellation fee that network providers apply. The same does not apply to PAYG plans as you are not locked into any contract. Secondly, if you default in meeting your monthly obligations, you can be reported to the credit bureaus and your credit score might suffer a beating.