Quick Guide to Phone Contracts

If you’re planning to join the millions of subscribers who are hooked to a phone contract, it’s important to understand what exactly it is you are getting into. Phone contracts are the most popular and preferred option in the UK today. Unfortunately, majority of subscribers are also overspending on the phone bill as per recent surveys. To avoid committing the same mistake, understanding how phone contract works will help. Here’s you quick guide to the phone deal.

What are phone contracts?

Phone contracts are phone deals where you are free to choose a handset and a phone bundle to match with your needs. In general, phone contracts in the UK last for 12 months, 18 months or the most common option, 24 months. You will be required to pay a fixed monthly fee for the duration of the contract allowing you to enjoy phone services including calls, texts and Internet browsing on your mobile phone.

Who are phone contracts for?

One of the chief advantages of a phone contract is the freedom to choose your own handset as well as the phone bundle. This means that phone contract are ideal for subscribers who are looking to own a new handset but can’t afford to pay for it upfront. With a phone contract, you only need to pay for the upfront fee and sometimes none at all. You get a new handset plus cheaper rates on the call, text and data services. These are the top two reasons why subscribers would rather get hooked to a lengthy contract than settle with pay as you go.

How do phone contracts work?

As opposed to pay as you go, phone contracts do not need any topping up. You’ll have a monthly allowance for call, text and data services at cheaper rates than the usual. This means you can avail phone services anytime, anywhere without worrying if you have enough phone credit. By the end of the billing period is when you pay for the fixed monthly fee that covers the cost of the new handset as well as the phone services.

In case you exceed the monthly allowance for your phone services, you’ll be paying the extra usage at regular rates. Make sure you pick a plan that perfect suits and meets your needs to avoid overspending on your phone bill.

How much do phone contracts cost?

The cost of your phone contract will depend mainly on two things. One is your handset choice and the other is the phone bundle, which include your allowance for call, text and data services. If you’re after the latest handset releases available in the market, expect for your fixed monthly fee to be quite costly. The same thing is true if you’re opting for a generous allowance on call, text and data.

When choosing your handset and phone bundle, bear in mind how they can affect your monthly fee. It’s best to always assess your needs and budget accordingly so you’ll be able to make the right decision. For more help on how to avoid overspending on your phone contract, Digital Trends has tips and guidelines that may help.

Is it for you?

While phone contracts are advantageous in a number of ways, it’s not always the best choice for everyone. Budget is always a key consideration. Remember that phone contracts hook you up for a long period of time. If you think you can’t handle the fixed monthly fee, it may be best to consider other alternatives to a phone contract.