Phone Contracts: Everything You Need to Know

Though phone contracts may be the most popular options for UK subscribers, it’s not always the best option for everyone. In fact, if you happen to be among the millions who pick the wrong plan, you might end up paying more in your phone bill than what you’ve bargained for. Before you close any deal, it’s always best to carefully understand what a phone contract exactly. This guide, hopefully, will tell you everything you need to know about the phone deal.

About Phone Contracts

Phone contracts are the type of phone deals preferred by many subscribers because of the chance to choose your own handset. In addition, you also get to avail a plan that offers you a combination of allowances for your call, text and data needs. A typical contract has a 24-month term. This means that you pay for a certain fee for the next 24 months. The fee will basically cover for both the phone and your service usage costs.

Elements of a Phone Contract

There are two major elements to a phone contract. For most people, the main focus has always been the handset. This is especially true for those who want the latest handset but cannot afford to buy it in cash otherwise. Unfortunately, focusing only on the handset choice is why many people are overspending on the phone bill. To avoid overspending on your phone expenses, there are helpful tips available at PC World.

Another element that’s equally as important as the handset is the phone bundle. The phone bundle is comprised of three elements - your call, text and data allowance. To avoid paying more than what you need, it is imperative to choose a plan that meets your personal needs. Don’t pick a plan just because of its generous data allowance.

Advantages of a Phone Contract

The fact that you can avail the latest handset without buying it upfront with a phone contract is one of the deal’s chief advantages. As a phone contract subscriber, you also enjoy exclusive promotions and incentives you cannot otherwise avail if you don’t opt for a phone contract. But best of all, the right contract should earn you huge savings on your phone bill in the long run. This is true, of course, provided that you ensure that you picked the right plan to meet your month-to-month call, text and data needs.

Disadvantages of a Phone Contract

Phone contracts are not without their disadvantages. While it seemed like the best option if you want the latest handset, the monthly fee can be quite expensive. You won’t also easily get approved for the latest handset and generous package plan if you have a poor credit rating. Then there’s the long contract to worry about. Most phone deals offer a 24-month contract. That means a hefty monthly fee for the next two years. Some carriers can be quite sneaky too and insert hidden fees into your phone bill.