Mobile phone contracts may seem convenient when you first subscribe to them but chances are you end up spending more than you really need to. I’ve seen headlines recently that revealed millions of customers in the UK continue paying the same monthly bill long after their contract has ended even though the amount factored in repayments for the handset. By doing that you are effectively paying for your smartphone many times over!
Here are the top money saving tips for mobile phone contracts that you should put to use.
Only Pay for what you need
Lots of retailers run clever upsell deals that come more internet data for just £X more per month. But why pay for something you don’t need? At the end of the month, you often discover that you still have unused data that doesn’t roll over. You can save those expenses by paying only for what you require. Use a service like BillMonitor or just make a note of our usage from your previous bills.
Then when it comes to taking out a new deal you know exactly what your monthly usage is.
Bargain for a Better Deal with Your Current Provider
The best time to haggle for a better deal is when the current one is about to expire. Your provider wants to keep you with them so they will offer you something to stop you cutting ties with them.
If you have an opportunity to bargain for a better deal, then try it. Research other suppliers who have better deals at better rates and use this information as leverage to get a better offer from your current one.
If they can’t offer you something good enough, then vote with your feet. Moving provider and taking your number has never been easier.
Buy a new phone outright or keep your existing one for a bit longer
Rather than going for a traditional contract that comes with a free phone, save up and buy the phone outright. In a lot of cases you’ll be paying more for the device over 24 months.
And think long and hard if you really need a shiny new gadget. If your phone is only 1 or 2 years old, then it’s more than fit for purpose.
Switch to a Pay as You Go Plan or a SIM Only Deal
What makes this option a savvy one is the fact that it allows you to dictate exactly the amount of cash you spend on texts, calls, and data.
The PAYG plan allows you to top up whenever your current bundle is up so you are paying for everything in advance. They’re also ultra-flexible so you can opt for less or more data on a monthly basis to avoid running out if you know you will be using more or wastage.
Most networks now offer pre-paid bundle SIM deals with giffgaff one of the most popular. You can see a full breakdown of the market on Tiger Mobiles and they claim to have every pre-paid deal that’s available in the UK right now. I haven’t checked but it’s certainly very comprehensive.
Change Your Provider to an MVNO
There are 4 main network providers in the UK; EE, Vodafone, O2 and Three. But there are lots more choices thanks to MVNO’s who piggyback off their infrastructure, often with lower prices due to lower overheads thanks to less customer service.
You’ll usually find the deals on these smaller companies far cheaper than the main brands. Some of the most popular ones are below:
· GiffGaff and Tesco Mobile use O2
· Asda Mobile, Virgin, BT use EE
· Voxi use Vodafone
· ID Mobile and Smarty uses Three
Whatever you do, don’t let your existing contract run over at the current monthly prices!