What is the Difference Between a Phone Contract and Pay As You Go?

There are several differences between phone contracts and pay as you go plans. Generally, a phone contract means paying monthly instalments for a specific number of minutes or texts. You will not own your device until the contract period has expired. You will get a prepaid connection and a certain number of free calls each month, but you may not have unlimited data or international roaming unless paying extra. However, you are still bound by the terms and conditions. You must also be committed to their service plan or risk paying an early termination fee.

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A monthly plan requires a contract. Most of these plans last two or sometimes three years. Mobile providers may charge you an exit fee if you decide to terminate the contract. Often, monthly plans include the cost of a new handset. You will pay nothing upfront for the phone, instead you will pay off the phone over the contract term. When deciding which plan is the best for you, make sure you have a clear idea of what you need. For a Vodafone Store Ireland, go to a site like King Communications

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Pay as you go plans have some advantages over contracts. A contract usually requires you to have a credit check before you can sign a contract. If you fall behind on your payments, you will be stuck with the same handset for the duration of your contract. Therefore, if you desire a new phone every few months, a pay as you go plan is your best choice but you will have to pay the upfront cost for a new device which can prove expensive.

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