Originally Posted by Thine Wonk:
“Why owe money if you don't have to even if it is interest free?...”
Because in an inflationary economy interest-free credit is cheaper than paying for something up front. Moreover the less you pay per month and the longer you pay it for, the cheaper it gets. The value of your fixed repayments falls at an increasing rate over time, as money becomes worth less due to inflation.
The only circumstances in which your idea of paying up front would save you money is in a deflationary economy (i.e where prices continually fall and the value of money increases with time). However should we find ourselves in that situation a mobile phone contract would be the least of your worries.
Quote:
“...sim free contracts are usually slightly cheaper, although not always...”
Sometimes that's true for the headline prices of new contracts (altough by no means always). They are almost never cheaper than the retention deals a good customer of a network should be able to get.
Quote:
“...with the flexibility I mentioned in my last post, i.e change provider, upgrade when you want, get software updates quicker, etc etc.”
This is the major benefit of going SIM free, not cost. In fact it's the reason I'm considering going SIM free.