One of the best things about Pay As You Go (PAYG) mobile phones is that they allow you to control how much you spend on calls, texts and data. You have more freedom than if you were tied down to a contract, and you only pay for what you use, as you use it.

Despite the simplicity of PAYG phones, however, many people still find themselves spending an awful lot of money topping up their phones. In fact, some of us spend so much on our pay as you go phones that it would be much cheaper to sign up to a monthly contract.

To find out if you could be better off with a PAYG deal or a monthly contract, ask yourself the following questions:

  • Do I often make long calls? A pay as you go phone is a good option for those who only make the occasional quick call (i.e. of 5 minutes or less), but it can be incredibly expensive for those who often make long calls. If you regularly talk for 50 minutes or more, a contract deal will be the best value option for you.
  • Am I more of a texter than a talker? If you prefer to text than talk on your mobile phone, PAYG is undoubtedly the best option for you. Whilst some contract deals give you unlimited texts, many PAYG deals give you a whole bundle of free texts without the added costs of calls and data.
  • Do I want to use data? If you want to check emails, browse the web and maybe even stream videos and play games on your device, PAYG isn’t for you. Whilst there are plenty of smartphones, like the Nokia Lumia 625 for example, which are available on Pay As You Go, making use of their mobile internet services will cost you a packet. Instead, if you want data, go for a contract deal where a certain amount of data is included each month along with minutes and texts.
  • Am I topping up all the time? If you find that you’re topping up your PAYG phone many times a month, you could find that a contract works out much cheaper.