Why do people still choose pay as you go phones?

If you've been a mobile phone user for a number of years, the chances are that you've got a pay monthly phone. Pay monthly deals offer a range of benefits to regular mobile users, including free texts and minutes, data allowances for using the internet and itemised bills, as well as the chance to bag one of the latest smartphones at no handset cost.

However, decades after the mobile phone was first introduced in the UK, a significant number of individuals are still using pay as you go plans, through which users have to pay in advance for credit and top up every time their balance runs out. Many people see pay as you go phones as expensive and inconvenient. However, there are several advantages to having a pay and go mobile.

Flexibility and cost control

For starters, pay as you go phones are much more flexible than their pay monthly counterparts. That's because there is no fixed term contract involved. Pay monthly mobile users usually have to sign a contract that can range from 12 to 24 months, during which time they're committed to paying their monthly bills. With pay as you go, you can spend as much or as little as you like each month, as well as being able to change your phone model whenever you want.

As a result of this flexibility, pay as you go phones may also offer customers greater control over their monthly costs. For example, you might spend £30 worth of credit in one month, but less than £10 in the next. Depending on your lifestyle, this could be cheaper than signing up to a £40 a month contract. What's more, buying a mobile phone outright and topping up only £10 or £15 a month could be a more cost effective long term option.

For instance, if you pay £200 for a phone and top up by £15 over a 18 month period, your total spend will be £470. On the other hand, if you receive the same handset for free on an 18 month contract at £30 per month, your total spend will be around £540. So sometimes pay as you go phones may offer a cheaper option over time.

Special offers on PAYG

Pay as you go customers may also receive special offers more frequently than pay monthly phone users. Some networks offer pay and go users a certain number of free minutes or calls if they top up by a fixed amount every month. Others may include other rewards,such as calls to a nominated number for free over a one month period or 100MB worth of free data. A few may also include free minutes to an international phone number if you top up to a certain threshold each month. This could be particularly beneficial for individuals with friends and family that live overseas.