Yahoo Finance 
Pay-as-you-go phone customers happiest
Pay-as-you-go (PAYG) customers are far happier with their phone deal than those of us who pay monthly.
Figures from Top Cashback reveal that 90% of PAYG customers are satisfied with their mobile payment plan compared to just 63% of those who are on monthly contracts.
More than half of people with monthly contracts have switched providers due to costs.
Residents from the south east and north west are the most disappointed with their monthly contracts.
Interestingly, three-quarters of PAYG users said they were confident they were on the cheapest tariff, despite nearly two-thirds (58%) saying they didn't shop around for the cheapest deal.
Which one is right for me?
Whether you should opt for PAYG or a contract comes down to you and how you use your phone.
PAYG is ideal for people who only use their phone for essentials only (like asking your partner to pick up some milk on their way home). It’s also a better option for a teen’s first phone or an emergency phone for your child when they go out with friends.
Prepay PAYG phones are also your best bet if you have a less-than-perfect credit history as you won’t need a credit check to get one.
However, the hassle of topping up and the risk of being cut off halfway through an important call due to lack of credit are two of the main downsides of PAYG.
If you’re a big talker or love to text, and you want to go online on your phone, chances are a monthly contract is better for you. You’ll get a fixed number of calls and texts plus a monthly mobile data allowance for browsing, although many phone companies now also offer tariffs with unlimited calls, texts and data.
There will also be a greater selection of higher-end phones available which are either free or subsidised as part of your monthly contract.
Convenience is the major selling point here. You don’t have to worry about topping up and your phone cutting out during an emergency call. And, speaking from experience, apps are a godsend if you commute by public transport.
That said, the standard phone contract is currently 24 months which is a long time in phone terms. If you’re in to the latest gadgets, or are easily bored, you may want to keep your options open for future handsets.
And unless you have insurance added to your contract, you have to be extra careful with your delicate handset. Today’s smartphones just don’t have the sturdiness of a good old Nokia 3310.
SIM only
There is a third option: SIM only. Most SIM-only contracts operate on a rolling month-to-month basis.
They often have great deals on minutes and texts because the offer doesn’t include a phone, meaning you can change mobiles when you fancy. The best part of a rolling contract is that you can cancel it with only a month’s notice if you spot a better deal.
Most phones will be locked to a certain network. This means that you can use your SIM-only card in an unlocked phone or in a phone locked to the same network as your SIM. It's normally free to unlock phones on Three, O2 and Vodafone but if you want to unlock an EE handset, it'll cost £20.42.
Check with your network first; they may be able to send you an unlock code. Failing that, head to the high street. Many of the shops who advertise it will unlock your phone for around a tenner.
