Knowledge Base

Contract vs PAYG - What is the actual difference in cost?

Started by: 271simon
On: 24/08/2016 | 13:58
Replies: 6

by: 271simon
on: 24/08/2016 | 13:58

Check out this post! Mobile Phones on contract are not actually THAT expensive!

Mobile Contract vs PAYG - What is the Real Cost?


Message 1 of 7
by: mcilwraith
on: 24/08/2016 | 14:04

its just one instance and not all will be the same.the guy`s worked out well for him.

i dare say it would work out for a lot of people if they took the time to work out the finances

i wonder why he mentioned giffgaff

Message 2 of 7
by: ip633
on: 24/08/2016 | 17:52

The example given in that article is very much the exception rather than the rule, and most contracts are essentially a loan, which almost always includes an element of interest that needs to be paid. I prefer to buy a phone outright, and take advantage of a sim only deal. That way you can get the best of both worlds, an unlocked handset, and a tariff that's meets your needs.


But the old adage about shopping around still holds true, so it's best to look at all options. If you're patient enough, it often pays to wait before buying the latest flagship model, because prices can fall markedly following their initial launch. But if you can find a pay monthly contract that works out cheaper, and I've seen a few, then go for it.

Message 3 of 7
by: gsklb04
on: 24/08/2016 | 19:01
It's more down to the fact you might some times get the same offer on PAYG or contract. But at the end of the day PAYG can be stopped when ever you want.

So say you loose your job, no need to grovel to the contract company asking if they will cancel the contract early.
Message 4 of 7
by: jimfraegala
on: 24/08/2016 | 19:08

Thanks for that @271simon very interesting but as @mcilwraith enquires, why mention giffgaff? Perhaps he mentioned the cheapest options he could find.


As far as I am concerned, it is not always the cost involved in using a mobile phone whether at giffgaff or anywhere else, for me the real bind is the thought of being tied in for two years or so. I prerfer the freedoms and the options we have here with no tie ins. 


That for me, is the beauty of Giffgaff, monthly goodybags, which can be changed whenever you wish and NO TIE IN.


Regarding the phone, rather than take what is on offer with a contract, i have chosen to pick the phone  I want and not what a contract would give me. 



Get a free giffgaff Sim
Message 5 of 7
by: 271simon
on: 24/08/2016 | 19:18
Yeah I agree with the comments re being bound for two years. But then it looks like the post is about financial side of it. Interesting to see the logic behind the calculations. I also think Giffgaff is the cheapest Payg around over all.
Message 6 of 7
by: lumiamad
on: 24/08/2016 | 20:37

Its a good thing we are all different in life, with different requirements

Message 7 of 7