A prepay mobile phone (also commonly referred to as pay-as-you-go, pay-as-you-talk, pay and go, go-phone or prepaid) is a mobile phone for which credit is purchased in advance of service use. The purchased credit is used to pay for mobile phone services at the point the service is accessed or consumed.

A mobile phone (also known as a wireless phone, cell phone, or cellulartelephone) is a small portable radio telephone. The mobile phone can be used to communicate over long distances without wires.

So, with a contract, you pay Verizon $300 up front for a 64 GB iPhone 6 and then pay $40 per month for two years, adding $960. And to add insult to injury, Verizon will charge you $30 to upgrade your phone at the end of the contract, for a total of$1,290.