The pros and cons of a mobile phone contract

Mobile phones are certainly not cheap. Think of the latest offering from Apple or Samsung. These smartphones are nothing short of technological wonders, allowing you to communicate in so many ways including voice, text, instant messaging and even video chat.
But they also offer so much more. With the advent of apps, the ways one can use their smartphones just continue to boggle the mind. There is GPS of course, but that is becoming old news as so many people use it on a daily basis. Apps can also turn your phone into a mobile office, allowing you to work from pretty much anywhere.
That said, each contract has its pros and cons and in this article, we are going to take a look at those in greater detail. When you are looking for a new mobile phone contract, or perhaps attempting to secure your first one, it is important to bear these points in mind when making your final decision.
Pros of mobile phone contracts
Let it be said, there are plenty of positives to taking out a mobile phone contract over a ‘pay as you go offer. These include:
• An unbelievable amount of handsets to choose from

A regular mobile phone contract with one of the main service providers like T-Mobile, 3, Orange or Virgin mobile gives you the biggest selection of mobile phones to choose from. Depending on your needs, you will be able to choose from entry level phones, budget smartphones and then the flagship phones such as the latest Apple iPhone or Samsung Galaxy. Note, the price of the handset is worked into the monthly fee for the contract, so the latest smartphones are going to push up the price significantly. That said, if you can afford it, go for it, but with the sheer range of phones available, no doubt there is something in your price range.

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• Contracts offer cheaper rates

A phone contract is far cheaper than a ‘pay as you go’ deal. Why is this? Well, the service provider includes everything in the bundle including all calls, texts, and data. Be sure to select a plan that caters to your usage needs. For instance, if you use more data each month, make that the primary focus or if you need to make lots of personal calls, make sure your contract is more call orientated.

• Flexibility
Directly linked with cheaper rates as well as the variety of handsets is the sheer flexibility a mobile phone contract offers. There are really so many ways to structure one. With a little pre-planning and research, you can compare various deals from all the major service providers and not only find one that you like but also one that suits your pocket!
• Gifts and extras

.Many service providers attached free gifts and other extras to their contracts as a way to beat their immediate opposition. These can be something small such as a mobile phone pouch but sometimes can include larger gifts like electronic gadgets. Although the service provider may say they are ‘free’ (and they well could be), make sure that their price is not worked into the contract.
Cons of mobile phone contracts
Of course, not all is a bed of roses when it comes to a mobile phone contract. For all the advantages, there has to be a few disadvantages right? These include:
• You are locked into a lengthy contractWhereas ‘pay as you go’ means you can change your phone, provider or upgrade whenever you want, a mobile phone contract binds you to a monthly fee for a period of 24 months usually. Now factor in the latest Apple iPhone or Samsung Galaxy and that monthly fee is sure to be pretty steep. Make sure you factor this into your budgetary equation when deciding on a handset and corresponding contract.

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• With a mobile phone contract, you enter into debt

Without a doubt, a mobile phone contract is a form of debt. If you have other existing debt, it may just be the thing that puts your budget over the top, meaning you struggle to make payments each month and to live comfortably.

• Consider your credit score

By entering into a mobile phone contract, which is a form of debt as we discussed above, you need to keep your credit score in mind. By defaulting on your contract, and not making payments, you will adversely affect your credit score. Again, before getting the latest, greatest smartphone, rather work out if you can afford it. Or better still, choose a cheaper option for peace of mind.
In today’s modern society, mobile phones have certainly become one of the most important pieces of technology we can own. That said, don’t just accept the first mobile phone contract you come across. Shop around and compare. The right handset and the right contract at the right price is out there. It just takes a little patience to find it.
If you have any further queries about the pros and cons of mobile phone contracts, please do not hesitate to contact us and we will help you.