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Pay as you go AT&T plan versus contract plans

Prepaid Phone Plans: Pay as you go AT&T plan versus contract plan?

In the past, having a contract on your cell phone was the norm. Every person had a contract on their phone, even if it was a different type, contracting was the standard with cell phone companies. Eventually there was the emergence of the pay as you go AT&T plan which emancipated users from demanding contracts. One main feature that attracted users to pay as you go AT&T is that you had no fine print or early termination requirements, just a plan that fits you when you want it.

Disadvantages of Contract Plans

Contracts typically lock you into a fixed payment period or it is a plan that requires you to pay a minimum per month. Some of the contracts may have a little room for flexibility but sometimes can be quite limited in their offerings. Contract plans may come with a clause that you have to pay if you decide to terminate the contract prematurely and this charge may range from $150 to $200 and this made pay as you go AT&T very attractive.

Contract plans can be very costly if you do not use your cell phone a lot. You may find yourself paying for minutes that you are not using and they would just keep rolling over to the next month. The pay as you go AT&T plan may be better suited towards persons that have a low cell phone usage rate. In this plan, as the name suggests, you would simply pay for the amount of call time you require and use it. This is far more convenient to consumers that do not use a cell phone much.


The contract plan may facilitate a user if he/she decides to increase their usage over a particular month. The rollover minutes would simply be used up and once you have not exceeded the maximum of minutes you would not pay more. For higher usage a contract can be convenient but when your usage fluctuates it can get expensive. In all cases, the pay as you go AT&T will always be more cost effective than any available contract as you just pay for what you need.

Cost Efficient

The pay as you go AT&T plan will alleviate customers from a signed contract which basically locks you into an agreement for at least 12 months. Pay as you go is more manageable in terms of the cost and the flexibility it offers. There is no demand on the client; you are free to conduct your business how you like.

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Pay As You Go AT&T Plan Summary

Pay as you go is primarily a pre payment method that allows you to monitor the usage of the minutes. It helps as you can decide how much you want to spend and at your own pace. This is one of the most popular plans today for cell phones. The needs of the client have changed over the years and the cell phone providers have met the needs with this flexible alternative. The support for these types of plans instead of contracts is overwhelming and it seems like it has become the standard in the cell phone industry.

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