Best Ways to Save Money on your Mobile Phone Bill

It seems as though everyone has a mobile phone these days, but the sad fact is that a majority of them are paying way more than they should, or could, be paying. When you take into consideration that most plans limit minutes, texts and data, you could probably find a cheaper rate if you took the time to look around a bit. Following are some tips to help you find a plan that is cheaper than the one you’re on.

Is a New Phone Really Necessary?

Bearing in mind that many plans have a new handset attached to the contract, you need to first determine whether or not you really, really need a new mobile phone. The one you have may be compatible with a great number of carriers and simply by changing the SIM card you could be up and running on a new plan that is much, much cheaper than the one you are currently on. So before even looking at comparing prices between carriers, determine whether you really, really need a totally new handset. If not, steer clear of contracts that include a phone as they will be adjusted upwards according to the phone included in the plan.

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What Are You Currently Paying?

Once you have determined whether or not you need a new handset it’s time to start comparing what you are currently paying for a mobile phone contract. If the cost of your current plan exceeds £15 monthly, you are probably paying way more than you could be paying with another carrier. However, if you have a very low credit score that will preclude you from most contracts, there may be only a few options open to you. Even so, they are still there. Perhaps your plan is high because your handset is included in the overall cost or you could be using extra data. These are the two biggest reasons for higher than average bills and can be avoided if you don’t need a new phone (as mentioned above) or do not use all that data that comes with our plan.

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Know the Different Tariffs and Choose the One Right for You

One of the most problematic decisions you will need to make is in choosing the tariff that is right for you. With literally unlimited combinations to choose between, it can be quite confusing knowing which tariff suits your needs but still keeps the cost low enough to be manageable. Basically, there are three different types of tariffs that include:

  1. Contracts that include a handset
  2. SIM only Contracts
  3. Pay-As-You-Go – PAYG

Each of these tariffs have advantages and disadvantages based on credit, usage and whether or not you already have a handset to use.

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Choose a Tariff According to Your Current Usage

For heavy users with a decent credit score, the contracts including a new handset would probably work well. Although they are a bit more costly than the other two options, the cost is spread out over time so it may not be as bad as buying a new phone up front for a PAYG.

If you already have a handset that is relatively new and will serve you well, a SIM-only contract may be your best option. In this way you are typically going to get a fixed term contract that doesn’t have the cost of the phone amortised in or you could have a 30 day rolling type of contract that may be an option as well. Like the above mentioned contract tariffs, this type of tariff is good for moderate to heavier users.

The PAYG option is best suited for light users or it could get quite costly. Bear in mind that you may find a tariff that allows so many minutes of talk and a few texts, but data can add up quite quickly. PAYG won’t require great credit and it may be easier to work into your budget because you can pay or not depending on the availability of disposable income.

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Do You Really Need 4G Speed?

With 4G speed you will get amazing internet speeds but do you really need that? Remember that you are paying extra for this feature and if you don’t do a ton of mobile browsing, you may be paying for a feature that isn’t entirely necessary. Younger people like this option (when credit permits) because they tend to do everything from their mobile phones – from Facebook to shopping. However, if you just communicate with family and friends via voice and text, this is a feature you don’t really need to be paying for.

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Use Your Current Mobile Phone to Choose the Best SIM-Only Deals

There are so many SIM-only contracts and deals out there that you really should take the time to compare between carriers and different deals within each company. The cost of paying for mobile phone usage could be astronomical if you aren’t careful to choose the right plan. This isn’t a decision to take lightly because one seemingly small feature could end up costing you £s every month!

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New Phone Loan vs. Contract – Which Is Cheaper?

Finally, if you really are in need of a phone then you need to take the time to look at the hidden costs in a contract. It may be cheaper to buy a new phone on a personal loan with a guaranteed fixed APR than it would be to have the cost of a phone calculated into your contract. A SIM only deal would then be your better option because it would be so much cheaper than a contract tariff that includes the high cost of a phone that has interest compounded upon interest as you pay your bill.

There is no doubt that you need a mobile phone in today’s fast-paced world. However, you can keep the cost lower if you take the time to compare tariffs against your needs. For most people a SIM-only contract is by far the cheapest and we advocate taking the time to choose the best one for your needs

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