Pay Monthly or Pay as You Go – Which Is Best?
This is another question people often ask me about mobile phones. A phone, especially a smartphone, can already be an expensive investment. This is why I recommend that you shop around for the cheapest plan that meets your needs. If you’ve already invested a hefty sum into your phone, then the last thing you want is to also be investing another hefty sum into your phone plan. This can add up to a huge expense for something that they actually don’t need. One way you can save quite a bit of money is by investing in a pay as you go phone plan. But is this really the right thing for you?
The Answer – It Depends
Really, whether a pay as you go plan is right for you depends on several factors, one is how often you use your phone, another is what you use your phone for. One thing I have noticed about pay as you go plans is that their coverage is usually quite reliable in major metropolitan areas, but as soon as you get into a more rural area, coverage can be spotty at best. If you’re an individual who needs reliable coverage all the time because you use your phone extensively for business purposes or keeping in touch with a vastly extended network of friends, family, and colleagues, then you probably want to skip the pay as you go plans because you won’t always have coverage in certain areas when you need it. Another reason to skip it is if you take your phone with you when you travel, especially internationally. Many major cell phone carriers offer monthly fees that you can add on to your monthly plan to give your mobile phone access to service when traveling internationally. But you usually can only get this service if you’re already on a monthly plan.
But Pay As You Go Is Cheaper
Almost anyone could save money on a good pay as you go type of plan. They are generally quite a bit cheaper in the long run. And if you decide for some reason, you need to cancel your mobile phone plan altogether, it’s as simple as not paying up for the month. There’s no cancellation fees involved with early termination of your plan since you’re only on the plan if you pay up at the beginning of the month. If you’re the type who only uses your mobile phone occasionally, and you don’t need a lot of fancy data services because you stick to basic calling and texting, then pay as you go is probably a reasonable option for you.
Sticking to traditional monthly plans is the way to go, I would say, if you’re a heavy mobile phone user who needs their phone for business purposes. Also, if you want to have access to reliable connections when you travel, then a monthly plan from a larger carrier is usually going to give you better connection in more remote areas, and you have the option, in many cases to add on international service if you travel overseas regularly.
But if you don’t use your phone very often, don’t have an extensive network of contacts that you’re constantly trying to stay in touch with, and don’t need extensive data services, then you can save a bit of change by sticking to a pay as you go plan. As a bonus, you can cancel any time without any sort of early termination fee. Regardless of what type of plan you go for however, replacing a lost or stolen mobile phone can be costly and expensive and your plan is already not cheap. This is why I recommend that you invest in something like Protect Your Bubble iPhone insurance since the peace of mind it will provide is priceless.