Choosing your mobile plan: Prepaid or contract?

Mobile phones are now almost a necessity of life for most people, yet the expense is definitely something that needs to be planned for and minimised. Terrible bills arriving can put a dent in the most carefully planned budget. The choice between prepaid and mobile phone plans can be an important one, and you should assess which is right for you before buying your next phone.

Mobile contract plan vs. prepaid mobile

Whether an appropriate mobile phone plan or a pre-paid phone suits you best will depend on your circumstances. Take the following into account when making your decision:

The only way to entirely avoid the sudden horror bill is to use a pre-paid phone. These can be ideal for teenagers or for those who are too busy to keep track of usage. It is impossible to spend more than you can afford to pay on pre-paid, and this is the system's greatest advantage
A disadvantage of pre-paid is that you may run out of credit at a critical moment. It is important to check your credit regularly to avoid being left without coverage when your car breaks down, for example
Another disadvantage of pre-paid is that most recharges have a shelf life. This means that if you don't use the credit within the specified time (which can be as little as a week, but tends to be longer with larger amounts of recharge) it will be taken off you
Plans may be cheaper than pre-paid phone recharges. If you choose to go with a plan, it is wise to investigate a variety of options before choosing the right one for your amount of use, and times of use
Plans can contain an unpleasant trap, in the form of a minimum contract time. Read the fine print carefully, as contracts can be impossible or at least very expensive to get out of once signed. Two years can seem like an awfully long time if you get stuck paying for something you no longer want
Business users generally find a plan more practical than pre-paid, and a capped plan can limit the possibility of a huge bill
Many providers currently offer considerably more value than you actually pay for on pre-paid recharges

The choice between plan and prepaid mobile phone really depends on how much you intend to use the phone, when, and whether you prefer another monthly bill or to know in advance how much you are spending.

Mobile phone options

In many ways the choice of plan or pre-paid mobile phone is a personal preference. Both have advantages, and can be the most appropriate solution in different situations, depending on the usage and application to which the phone will be put.