Saving Money on Mobile Phone Contracts

Written by Karen Bryan

A consumer’s mobile phone contract is now a considerable part of their monthly spend. The national average salary is £539 per week, £2,335.66 per month making the annual average wage £28,027.99. The average monthly mobile phone bill in the UK is £45.60 per month. That’s a whopping £547.70 UK consumers spend on average on their mobile phone bill per year.

Quick guide to Reducing bile Phone Bills

Minutes, texts, cost of device and data allowance is how networks build their monthly tariffs. Understanding what you need helps guide you to the right tariff for you.

Most contracts now come with unlimited minutes and texts, it’s the data usage that drives the monthly tariff. Check out your previous 3 months usage on your device to understand your average monthly data usage. Most consumers are now within range of a free WIFI device so overloading your data plan can lift your monthly bill for no reason.

Not having enough data available is when your bill can spiral out of control. Addition GB of data is generally expensive but if you have done your research you should know how much data you really need.

Good networks like EE and Vodafone offer free roaming in most European destinations but if you travel further abroad, this should be considered before signing any contract.

Is the phone Free?

A free phone is never a free phone, the price of the handset is blended in the cost of the chosen monthly tariff. Consider paying a smaller amount upfront and the total cost of the phone and tariff over the 24-month period will drop considerably.

Happy with your device?

If you are happy with your current phone and don’t want to upgrade to the latest iPhone x Or Note 9 then consider changing to a sim only plan. If you have finished your contract you have already paid for your device over that period. It makes no sense to stick on the same plan.

Upgrade vs new contract

When you get close to finishing your contract your provider will contact you. Upgrading can make sense if you want a new device but often the price available on an upgrade option will not be as good as signing a up to a new plan.

Networks want new customers, so the best deals are always available to new customers. Check out other providers and see where the best deal is. The only catch is you may have to change your number.

A PAC code allows you to move networks and keep your old number once you have given notice on your current plan. This gives you 30 days to find the best deal.

Free Gifts and Cashback

Most of the cashback and gift offers work out great for the consumer. To work out if a gift works for you, add the total phone cost (any upfront cost paid for the device and the 24-month bill for your contract) and take away the retail cost of the gift. This will show you if the gift option is the most cost-effective route.

There two variations of cashback. Auto cashback is paid by the vendor automatically. Redemption cash back is redeemed over the duration of the contract. If you remove the amount of cashback received over the duration of your contract you can see the equivalent line rental paid after cashback reduced considerably.

In Summary

New connections are always cheaper than upgrading. Understanding your usage, access to WIFI and if you need a new device all factor in to saving money on your mobile phone plan.