Understanding contracts? (currently on PAYG)

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Hi all,

I might appear a bit dumb at this subject, but i have never been on a contract phone before and theres just a few things am concerned about, so here goes:

Monthly charge - I understand there are various tariffs and different rates for contracts,
but lets say i am looking at a £25 a month deal with o2, i then see line rental next to it for say £30, so is this paid ontop of the £25 a month? or is this inclusive?

Contract duration - are there any benefits for going with 18 months, as opposed to 12?

Charge - If i was to go over my £25 a month deal in calls, would i get charged a lot?

Can the contract be changed from say £25 to £30?

Any finally what are benefits of having a contract? also the disadvantages?

Thanks for your time,

Andy
 
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