Should I change from Pay and Go?

[Anonymous]

Any help would be greatly appriciated.

I have been on O2 for many many years, always on Pay and Go.

At the moment I have a Sony z1 compact but the side button has broke and I need a new phone. I am on the £15 big bundle where I get...

• 750 minutes

• 2000 texts

• 2gb data

I never go over this amount, and I usually keep phones until they break, this one I have had nearly 2 years.

I am debating changing onto contract, but don't see the benifits. But I am a contract novice.

I'm looking at getting the Sony Z5 compact, I can get it on 24 month contract as either...

£109.99 upfront and £28.50 a month, or £33.50 a month, both for...

• 3gb data

• Unlimited texts

• Unlimited minutes.

I would prefer the £109.99 upfront one.

So, am I right in thinking, if I do £28.50 times 24(months) (=£684), plus the £109.99 upfront= £793.99 is what I'd pay in total, then I'd start another contract for another phone?

If this is the case, if I compare with Pay and Go, if I stay on the £15 big bundle and do £15 times 24 months=  £360, plus the price of the phone upfront £299.99 I would be paying £659.99 for 24 months.

Staying on Pay and Go would mean I save £137.

Is there any advantage of me chaning onto contract?

On contract, once I've paid £299.99 for the phone, will my monthly contract reduce?

Everyone is telling me to change onto contract but I can't see the beniftis. Any help would be greatly appriciated.

Thank you!

[Cleoriff · Accepted solution]

Hi @Anonymous Like you I was on Payg till about 3 years ago. I made the move to contract and honestly have never looked back  I never go over my allowances and pay a fixed sum every month. I found with PAYG my top ups were often quite expensive. Some info here about changing.

http://www.o2.co.uk/movetopaymonthly

Also with pay monthly you do have the benefit of a Refresh contract http://www.o2.co.uk/help/pay-monthly/o2-refresh-explained

http://www.o2.co.uk/refresh   A Refresh contract allows you to upgrade your phone after 12 months

It is entirely up to you of course.... but if asking my advice I would change to contract if it suits your needs.

[jonsie]

I have been on contract for many years and it's been convenient for me. The direct debit just takes every month and I can forget about having to top up. Also with a contract, allowances are better but not hugely so. I always buy my phones outright and unlocked thus allowing me to have a sim only contract.

What you have to consider is that taking out a two year contract and being committed to paying every month, sometimes peoples circumstances change and a contract is the last thing they need.

My circumstances have changed so I'm unsure whether to renew in December or not. The data is of no use to me but there is the added bonus for me of being able to use TU over wifi to either call or text home free. To me that is the main advantage of a contract over P&G.

Ultimately, the decision is really down to yourself but hopefully you will be able to make an informed choice on what suits your circumstances. Don't feel pressured to take a contract because of friends if you aren't really comfortable doing that.

[MI5]

As a low user like you are I would suggest you stay on PAYG.

[Bambino]

@Anonymous You seem to have answered your own question. If you've done your sums correctly, and Pay & Go works out less expensive, then it really doesn't matter what your friends are saying. There are several advantages to Pay Monthly, but if they don't outweigh what you think you're saving on Pay & Go, and cost is what's important to you, then stay where you are.

[Anonymous]

Thanks guys @Bambino @MI5 @jonsie @Cleoriff.

When I upgrade do you have a range of phones to pick from or is it free range. And does your monthly fee stay the same when you upgrade?

Also once the phones been paid for does my monthly fee drop for the rest of the 24 months or not?

I'm guessing contract is sort of for people who can't afford to buy the phone upfront? Would that be right?

Also would sim only be any good for me do you think? I know you have to buy the phone upfront, but are you given upgrades?

Thanks!

[Cleoriff]

Hi @Anonymous

When you upgrade you do have a range of phones to choose from

Contract is for people who want to pay a set monthly fee and have the benefits of a contract phone.

Personally I am sim only as I said earlier. I bought my phone outright.  I have all the benefits of a contract deal but pay less a month.

A matter of personal choice. If you read through the link I gave you about Refresh you will see the advantage of that if it suits your needs...

[adamtemp64]

@Anonymous Yes when you pay off the device plan it drops down to the airtime fee only.