Ditch the contract: is pay-as-you-go cheaper?

Print Friendly

Before the rise of smartphones, pay-as-you-go plans (often abbreviated as PAYG) were aimed at the ‘penny-wise and pound-foolish’.

Sure, you didn’t have to commit to any large monthly payments, but getting charged for each minute of conversation and every individual text message had a way of adding up. Compared to the unlimited plans that came with a one or two-year contract, pay-as-you-go was hardly an enticing prospect.

Nowadays, however, things have changed. With the advent of free messaging apps and pay-as-you-go bulk-buy options, contracts aren’t necessarily the gold standard anymore. Depending on how often you use your phone, and what you use it for, a pay-as-you-go plan may actually wind up saving you money.


Today’s pay-as-you-go plans allow you to purchase minutes, texts and data in pre-packaged bundles, rather than paying for each minute or SMS individually. In essence, PAYG bundles are just like a contract, except you’re never locked into any plan for longer than a month.

Pay-as-you-go bundles are particularly beneficial if your phone usage tends to vary from month to month. For example, if you know that you tend to call and text more people during the Christmas season, you can simply choose to buy a larger bundle for the month of December. Alternatively, if you’re planning a three-week holiday to Spain in July, you can choose a small bundle for that month and only buy what you need.


Even if you opt for a PAYG bundle with unlimited calls, texts and data, it can still work out cheaper than signing up for a 12- or 24-month contract. Many providers, such as Three or GiffGaff, even offer ‘unlimited everything’ for just £10-£15 a month.


One of the biggest perks of pay-as-you-go is the upfront, predictable cost. Unlike with 12- or 24-month contracts, you’ll never have to worry about getting hit with an unexpectedly large bill. With pay-as-you-go, you only pay for what you need and it’s impossible to “go over” your allotted minutes or data. You are always in control of how much you spend.


Pay-as-you-go plans have always been the preference of the noncommittal—and for good reason! Financial circumstances and phone technologies change, and being stuck in a two-year contract can be extremely irritating.

One huge benefit of pay-as-you-go plans is the freedom they afford you. There’s no agonising wait for a free phone upgrade. There’s no frustrating realisation that you’ve paid for a plan you don’t need. You never find yourself bound to a provider that has poor coverage or substandard customer service.

With pay-as-you-go, you can adjust your tariffs every month, upgrade whenever you feel like it and even ditch the plan completely at any time. So, before you sign on the dotted line, consider whether pay-as-you-go might make more sense for you (and your wallet).

Do you use pay-as-you-go? Would you ever consider switching? Let us know in the comments below! 

The following two tabs change content below.

Silversurfers Features Editor

Hello there! I’m Rachel and I’m the Features Editor for Silversurfers. I work behind the scenes to bring interesting, informative and entertaining subject matter to the Silversurfers community. I hope you enjoy the features we have shared with you. Please feel free to comment below and share your thoughts with us, we love to hear from you!

Latest posts by Silversurfers Features Editor (see all)

Not a member?

Join the silversurfers community today! It's free, easy to do, and is packed full of features and amazing offers!

Join the community!
Click here if you have forgotten your password
2nd Aug 2016
Thanks for voting!
must admit I used to be a pay and go advocate but hardly used my phone now I use a monthly bundle pack and use my phone slightly more.I never use my allowance but phone and text when I want and can use internet when out and about.I do set an alarm to warn when data limit is near,
20th Oct 2015
Thanks for voting!
Referring to pay as you go mobile phones
Iv found that the p.a.y.g. is the best way for me, to keep control over what I want to spend on phone calls,

I have both a simple phone, as well as a smart phone . and there's a world of difference between them, due to their technical designs
and programmes, for example the simple phone doesn't have any apps,at all, where as the smart phone has more than enough depending what you want to use it for,
like everything else once you find your way around them ,
you'll find them easy to understand and use.

so depending what you need a mobile phone for either way, for me in particular, the p.a.y.g. method would and will always be my first choice.
8th Jan 2015
Thanks for voting!
I was advised many years ago if you go abroad go in to a local phone shop in the country you are in and buy a pay as you go sim and use that while your away as it is a lot cheaper it works for me
8th Nov 2014
Thanks for voting!
I had never thought that pay as you go could be cheaper but I will definitely consider it when my phone is due for upgrade.

Community Terms & Conditions

Content standards

These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.

You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.

Contributions must:

be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.

Contributions must not:

contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.

Nurturing a safe environment

Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.

We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!

More Mobile Devices

Apps to help you get organised Person At Breakfast Looking At To Do List On Mobile Phone
If staying more organised is high on your list of resolutions for 2016, then technology is here to...
Confused about mobile phone options? Many hands holding a mobile phones on white
Here are some top tips to help you find your way through the mobile phone jungle Choosing the...
iPad ... My view! Ipad isolated
The ubiquitous iPad has now been with us for four years and has evolved from the original version...
The best apps to help you monitor your spending Smartphone with finance and market icons and symbols concept
There is really an app for everything these days and managing your finances is no different...
Over 55s are rapidly catching up with smartphones and apps Lead image for Silversurfers article
It is true that smartphone penetration and mobile apps usage among older age groups is lowest...
Has the Apple Watch’s time come? Apple Watch Close-up Details
Another year and another new Apple product. As its new wrist appliance hits the market, we wonder...
Apps for your grandkids Happy boy playing with touchpad in the car
Keeping your Grandkids entertained is not always the easiest task especially if they’re cooped...
The best apps for travel Preparation for travel, cell phone, money, passport, road map on
Unless you were born after the mid-90s, it won’t seem all that long ago when the little phone...
The new iPhone: is it worth the price tag? iPhone 6
Apple's newest iPhone has launched with much fanfare from the tech community, but with a starting...
Tile Be There For You tile
Fed up with losing your keys/wallet/phone/everything? Well, you'll probably fancy a clever new app...
Reducing the divide of Smart Phone ownership switched off
It has been predicted that 2014 will see an influx in smartphone ownership in our over 55’s age...
Doro Liberto® 810 - The Android Smartphone for Beginners. Doro Liberto 810 front and back
In today’s market, Smartphones are everywhere, but Doro have created an Android phone which is...