Choosing the right mobile phone deal after getting a mobile phone is not an easy task with the various options of mobile deals available. Two of the most popular plans are Pay Monthly and Pay as you go plans.

Pay Monthly plans require a long-term contract that involves a fixed monthly charge in return for a set amount of calls, texts, and phones; your monthly charge varies depending on the type of phone you opt for. In contrast, Pay-as-You-Go plans to offer a straightforward process without a contract, allowing users to pay only for the services they use.

Understanding the difference between the two plans and their pros and cons will make choosing mobile phone plans easier.

What is Pay Monthly?

Pay Monthly plans, also known as phone contracts, are plans whereby you pay a certain amount of charge every month for the period of your contract, which could be 12, 18, or 24 months. The contract period varies depending on your network, supplier, and how expensive the phone you opt for is. With pay monthly plans, you will get a set amount of mobile service(data, calls and text)

Why you should choose Pay Monthly

• Cost Management: By opting for pay monthly, you can manage the cost of your phone, especially if you find it difficult to pay your phone cost outrightly. Then you can opt for pay monthly phone contract to spread the cost of your new phone and conveniently during the period of your contract. You can get a new phone with little to no upfront cost.
• Fixed Monthly Fees: With pay monthly contract, the monthly cost charged is a fixed amount of money that covers for phone service and cost, making it easy to predict your monthly expenses without overspending.
• Additional Perks: Pay monthly plans usually include access to streaming service, international roaming in some countries, and family plan discounts. All these can offer better value to customers.

Pros and Cons of Pay Monthly Plans

Before opting for a pay monthly contract, it offers some benefits and disadvantages;

Pros of Pay Monthly Contract

• Access to new phone: With a phone contract, you can get new smartphones with little to no upfront cost. 
• Flexibility: Offers the flexibility to choose any pay monthly phones.
• With pay monthly, you have access to network incentives and perks like streaming service subscription, unlimited data, 
• Bundled package: You can enjoy bundling all your phone services in one package.
• You can spread the cost of your phone and pay it every month during your contract length.

Cons of Pay Monthly Contract

1. Long-Term Commitment: You are locked into a contract for a set period. Early termination can result in a penalty charge.
2. Higher Overall Cost: Considering the interest and other fees, the overall cost of the phone and service might be higher compared to buying a phone outright a
3. Credit Check Requirement: These plans usually require a credit check, which could be a barrier for those with poor credit history.

Pay Monthly Contract is ideal for those who use their phone service frequently. Makes frequent calls and uses a lot of data. It is also a convenient usage for individuals who prefer having a bundled phone and service plan. Or anyone who can commit to a long-term contract with a predictable billing system.

What is Pay As You Go Mobile Phone Plans

Pay as you go is a contract where you only pay for what you use. With this contract, you pay in advance for text, calls, and data you intend to use. Unlike the pay Monthly contract, you are not tied to a contract. You can only access your phone services when you have credits available. Once you run out of them, you must top up to continue using your phone service(calls, texts, data). However, to start using Pay As You Go, you need a Payg phone and sim card, which you can get at the cost of €5. 

Why should you Choose Pay As You Go?

• Prepaid Service: With pay, you buy credit beforehand, and this credit is used as you make calls, send texts, or use data.
• No contract: You are not tied to any long contract with PAYG you are free to switch providers or plans whenever you want.
• No Credit Check: PAYG does not require your network provider to carry out a credit check. This makes the contract accessible to anyone.

Pros and Cons of Pay As You Go Mobile Phone Plans

Pros of Pay As You Go

• Pay As You Go does not have a fixed monthly fee you have to pay.
• You have the flexibility to change plans or providers without accruing any penalty charge.
• No bill shock with your phone expenses, as your services are prepaid.
• Your mobile phone expenses are controlled because you decide what you spend and how much you pay.

Cons of Pay As You Go 

• You need to pay for a phone or own one to access Pay-as-you-go plans, which require a higher upfront cost.
• You can access the same services or subscription for a long time, like a pay-monthly contract.
• Paying for calls, texts, and data at a prepaid rate costs more than a monthly plan.
• It requires a regular top-up of your services(calls, texts, and data) to avoid running out of service.

Pay-as-you-go is best suitable for individuals who need a mobile service for a short period or want the freedom to change providers easily. It is also a great option for individuals who do not use their phone services frequently.

How to Cancel Pay as You go Mobile plan

Cancelling a Pay-as-You-Go plan is a straightforward process, as you are not tied to a long-term contract. Here are the general steps:

• Stop Using the Service: Simply stop adding credit to your account. Without credit, your service will eventually expire, and the account will become inactive.
• Contact Customer Service: If you want to officially close your account, contact your provider’s customer service to inform them of your decision.
• Remove Auto-Top-Up: If you have set up an auto-top-up option, disable it to prevent further charges.

Factors to Consider when Choosing Pay Monthly or Pay-as-you-go

When deciding between Pay Monthly and Pay-as-You-Go mobile phone plans, here are some factors you should consider

1. Usage Patterns

Consider your phone usage pattern when deciding which mobile plan to opt for. if you are a user who uses a lot of data and makes frequent calls and texts, opting for a pay monthly plan is more cost-effective as it is a bundled service. However, it’s best to opt for Pay as you go for users who do not frequently use their phone services, as it saves you money by only paying for what you use.

2. Budget

Consider your budget when choosing a mobile plan. If you prefer a fixed expense and can commit to a fixed monthly payment, then a Pay Monthly plan is ideal as it includes the cost of the device and your phone services. However, if you want to control your spending and avoid a long-term financial commitment, Pay-as-You-Go allows you to pay only for what you use, making it more suitable for flexible budgets.

3. Phone Preference

Your mobile phone presence should also be considered. If you prefer the latest smartphones without paying an outright upfront cost, Pay Monthly plans are your best bet, as they usually bundle any device of your choice into the contract. On the other hand, if you already own a phone and do not need a new device, a Pay-as-You-Go plan is a better choice as it focuses solely on the service.

4. Commitment Level

Evaluate your willingness to commit to a contract. A Pay Monthly mobile plan requires a long-term commitment, which typically varies between 12, 18, and 24 months, and also includes an early termination fee if you cancel the contract prematurely. But Pay-as-You-Go plans offer more flexibility with no long-term commitments, allowing you to switch plans or providers however you want.

5. Credit Considerations

Consider your credit situation. Pay Monthly plans usually require a credit check, which can be a hassle if you have a bad credit history. If you want to avoid credit checks or have a less-than-perfect credit score, Pay-as-You-Go plans are more accessible as they do not require a credit check.

Conclusion

Choosing the right mobile phone plan between Pay Monthly and Pay-as-You-Go depends on several factors, which include your usage patterns, budget, phone preference, commitment level, and credit considerations.

Pay Monthly plans offer a fixed monthly cost, access to the latest phones, and additional perks but require a long-term commitment and may involve higher overall costs and credit checks. On the other hand, Pay-as-You-Go plans to provide flexibility, control over spending, and no need for credit checks but may have higher costs and require regular top-ups. By carefully considering these factors, you can select the plan that best meets your mobile phone needs and preferences