Be sure to back up your contacts in iTunes when using pkgbackup. It saves as a contact that's why. Info tab in iTunes, select your backup option, sync, and you're good.
I am glad you reminded me about my contacts, I forgot. I had setup itunes to sync with google contacts because that was the only way I could get the contacts off my old windows mobile phone.
I checked out pkgbackup and $7.99 is a lot for an app
There is a free alternative called aptbackup. It does the same thing however it is known to be a tad unreliable. Sometimes it works and sometimes it doesn't. BUT it will only work if you restore from backup. Usually restoring from backup is fine but if you are upgrading/restoring for the sole purpose to fix an existing problem, restoring from backup isn't recommended. If you don't currently have a pre-existing problem then restoring from backup should be ok and using aptbackup will be fine (assuming it doesn't bug out).