PAYG vs Pay Monthly vs a Phone Contract – How to Choose a Phone Plan

PAYG vs Pay Monthly vs a Phone Contract – How to Choose a Phone Plan

Bought a new phone, new mobile phone package or had your current mobile phone contract run out? You have a variety of options available for you to service your phone, which we'll explain and compare in this article.

What is a Pay-Monthly plan?

A Pay-Monthly plan usually refers to a fixed term contract which can sometimes include one of the latest smartphones as well as a certain amount of data allowance, minutes and texts to go along with it. This contract will be for a fixed term over a number of months, and often will require a larger upfront payment to contribute towards the price of your brand new smartphone if a handset is included.

Pros and cons of pay monthly plans

Pay monthly plans are often a more expensive option, as the cost of the phone is included in the monthly payments. However, this also means you can get the latest smartphone without paying an upfront cost. Additionally, pay monthly plans typically come with a longer contract commitment and may charge early termination fees if you decide to switch providers before the contract ends.

What is a SIM only plan?

A SIM Only plan is a mobile phone contract where the provider supplies you with just the SIM card and a monthly allowance of data, texts, and minutes. Unlike the Pay-Monthly plan that includes a smartphone, this type of plan does not include a handset. The major attraction of a SIM Only plan is the cost, which is typically lower as you're not paying off a phone each month. It's an excellent choice for those who already have a phone they're happy with or are buying a new one outright.

Pros and cons of SIM-only plans

Some advantages of SIM-only deals include the flexibility of a shorter contract commitment, lower monthly costs, and the ability to keep your current phone. However, some drawbacks may include not getting the latest smartphone with the plan and potentially having to pay for a new phone upfront if you decide to upgrade to a phone plan.

What is Pay As you Go

Pay As You Go, often abbreviated as PAYG, is another popular mobile phone service option. With PAYG, there is no contract or fixed monthly contract. Instead, you 'top up' your account with credit, which is then deducted for each call, text message, or data usage. The main advantage of this plan is the flexibility it affords, as users only pay for what they use, and there are no contractual obligations to worry about. This service can be beneficial for those who make infrequent calls or use minimal data, providing an economical alternative to fixed monthly plans.

What does SIM only mean? What does it include?

SIM only means that the plan only includes a SIM card and not a phone. This means that you will need to have your own unlocked phone or purchase one separately. The SIM card will provide you with a monthly allowance of data, texts, and minutes, depending on the plan you choose.

Is a SIM-only deal a contract?

Yes but not in the same way as a traditional contract. Although some SIM only phone contracts from other providers are for fixed periods, our SIM-only deals are on 30-Day rolling contracts with multiple mobile phone networks.

Can I upgrade from a SIM-only plan to a phone plan?

Yes, you can upgrade from a SIM-only plan to a phone plan at any time. Some providers may offer incentives or discounts for upgrading to a phone plan, so it's worth checking with them before making a decision. However, keep in mind that upgrading to a phone plan will likely require signing a new contract and potentially paying an upfront cost for the phone.

How do SIM-only deals work?

SIM-only deals work by providing you with a SIM card that you can insert into your phone. This allows you to make calls, send texts, and use data according to the allowance included in the plan. Unlike traditional phone plans where the cost of the phone is spread out over the monthly payments, SIM-only deals only charge for the SIM services provided.

What's the main difference between pay-as-you-go and pay monthly?

The main difference between pay-as-you-go and pay monthly mobile plans is the payment structure. With pay as you go, you only pay for what you use, while with a pay monthly plan, you have a set monthly fee that includes an allowance of services. Additionally, PAYG does not require a fixed-term contract, whereas a pay monthly contract typically does.

Back to blog