Difference between Pay & Go and Pay Monthly tariffs

[Anonymous]

I am a little confused: I have in my O2 SIM card a tariff "Pay & Go": it is "Big Bundles" 2GB, 400 mins, 4000 texts, £20 A MONTH. I have to pay £20 a month and my minutes, text and GB are re-initialized every month. If I don't top-up my SIM at the monthly expiration, I can no more use it, indipendently of how much traffic I have consumed. My question is: since another group of O2 tariffs is called "Pay Monthly", what is different in my tariff, so that it is not a "Pay Monthly", but a "Pay & Go"? What makes my tariff a "not pay monthly" tariff?

[viridis · Accepted solution]

Because it's optional, with pay monthly, you are contractually bound to pay the fee whether used or not

[Anonymous]

You would probably get better value for money (I.e. a better allowance) on pay monthly, but you would be credit checked, and as @viridis said be contractually obligated to pay that amount each month, non-payment of which could result in a hit on your credit score if O2 escalated the matter.

With pay as you go you can dump that sim card at any time and choose a different deal (and/or network) that suits, as long as whichever handset your using is unlocked.

[Cleoriff]

It is really what suiits you best and meets individual needs. I was PAYG for years and happy with that.

However I now go abroad quite often and I find my monthly bill is MUCH lower on contract than ever it was on payg

If you control your allowance and don't  exceed the limit on the tariff....then contract is better for me I find.

[Anonymous]

Hi and welcome to the forum.

Their are advantages to pay monthly such as free use of voicemail , better O2 travel usage ref data and you get to use Tugo and on full contracts a nice new shiny phone.

I'm on the big bundle tariff you speak of on Payg too and prefer that as I'm not locked into a contract as such ,and if I don't top up then you just drop onto standard calling charges until you do and then the allowances are refreshed and your given a new anniversary date.

The breakdown of charges is given in your myo2.

The beauty of choice.

If your still unsure why not pop into your most local O2 high street store and I'm sure they'll guide you further.

[jonsie]

If you do opt for a contract make sure o2 meets your needs coverage wise.too late if you're tied into a 12/24 month deal.

[MI5]

As stated, there are differences and pros and cons either way. The biggest advantage of PAYG is that you are not committed to a lengthy contract time (mostly 24 months if you take a phone or 12 months for sim only tariffs).
You can skip payment one month and just accept incoming calls and texts if you wish rather than having to pay the contract amount every month regardless of usage etc.