If you have budgeted for the outright cost of a new iPhone or another smartphone, you can save money with a SIM Only or Prepaid plan, plus you’ll have the flexibility to move to other plans and/or telcos without hardware exit fees. That said, paying off a new iPhone or another smartphone with 12, 24 or 36-month handset repayment terms is a great way to avoid the big sting of an upfront cost.