Pay-as-you-go VS Pay monthly

Mobile phone contracts can be divided into two categories: pay monthly and pay-as-you-go (PAYG). However, as with any other products and services, they have their own pros and cons which can seal or break the deal for you.

Pay monthly requires you to repay the company at the end of every month. Meanwhile, if you choose PAYG, you will have to pay for the first month in advance. Read on to learn more.

Pay monthly mobile phone contract

Contract customers wait until the phone bill comes in before they are informed of how much money they owe to their network provider. The bill usually includes fees for the mobile phone and the network charges incurred throughout the month, and the customer is bound to pay for it within 18 up to 24 months.

Yes, completing a pay monthly contract can take a long time. In two years, two new smartphone models under the same product line would have been released, which makes your smartphone two generations behind.


If you donít want to stress yourself out with monthly repayments, you may opt for a pay as you go contract. You pay for your smartphone upfront so youíll only have to pay for network charges such as calls, texts and mobile data. The cost could be lower than a pay monthly contract, allowing you to have control over your phone expenses.

Another type of PAYG is the sim-only contract. Pay your phone upfront and youíre good to go. You may ask the service provider to create a one-month deal for the phone or a 12-month post-paid plan, minus the fees for the mobile phone.

After six months or so, you may want to request for an upgrade on your phone or swap it with other people. You are not tied up to a 24-month contract which limits your freedom to change sim cards or switch mobile phones.