We all want to save money on our bills – especially when it comes to our phones, whose accrual of monthly cost often feels random, inexplicable and most of all, expensive. But with a little know-how and endeavour, you can reduce the monthly cost of your mobile.
That know-how acquisition starts here; here are 6 tricks for reducing the cost of your phone bill.
STICK TO A BUDGET
If you find that with each monthly bill, renewal of your contract or upgrade to a new device, that the cost of your phone bill keeps going up, then firstly, you should set a budget.
Setting yourself a budget or a spending cap can help hugely. The majority of mobile networks allow you to put a stopper on your data usage to avoid bill shock at the end of the month. We’ve all been there, roaming unknowingly when abroad or streaming Spotify a little too enthusiastically when on the move – and the heavy financial toll that follows isn’t an experience to be cherished.
Taking a more holistic look at your budgeting, there are plenty of apps to help you manage your precious pounds in other areas, too. We recommend Yolt, Emma and Money Dashboard, in particular. All of them do the hard work for you and are free to use, though there are paid options if you need a bit more help – yep, we realise the irony of that, too.
TRIM YOUR SIM
Did you know that 7 out of 10 people could save at least £222 per year by switching to a phone contract that genuinely reflects what they use? That’s because, on average, mobile phone users are wasting approximately 3.4GB of data per month. Yikes.
And this, of course, has only been exacerbated by the majority of the country spending a whole lot more time at home lately. If you think you could be one of those with leftover data on their contract each month, then there are some simple steps you can take to save some serious cash on your phone bill.
Using a SIM comparison service is a great place to start. Firstly, check in with your current contract provider, who can give you an overview of your average monthly usage, making sure you take into account the extended period of downtime we’ve just been under and its various ramifications on your data usage.
Then, it’s time to compare. Ideally, you’d want to find a comparison service that isn’t affiliated to a particular network – such as Compare the Market – so that you get the best lineup of what’s out there.
Or, if you fancy going it alone, checking your bills from the last 12 months can help you to work out your average usage. Bill help sites like Bill Monitor can work out what you need; and if you have an iPhone, head to Settings > Mobile Data > Current Period to see what you have used so far this month. You might be surprised.
GO SIM-ONLY
When you break down your contract, it’s often surprising just how much of your monthly payment is dedicated to the handset. And shockingly, a small but significant minority of customers (in 2018, Ofcom estimated the number to be 1.5 million) continue to pay for their handset after their minimum contract period expires and their handset is fully paid for.
Choosing to go SIM-only is another great money saver if your monthly bills seem to be heading skywards. Whereas a traditional SIM card and phone bundle will lock you in for a fixed term and a fixed price, choosing to go SIM-only gives you way more freedom and is better for your wallet, too.
It’s also a great option if you’re happy with your current handset or you want to get one without going down the traditional network route. Read this handy guide on everything you need to know about SIM-only or Money Saving Expert’s take on the best pay-as-you-go SIM-only deals in the UK to find out more.
SWITCH TO AN MVNO
An MVNO is a mobile virtual network operator such as Tesco, GiffGaff and VOXI that doesn’t own a network infrastructure, but instead rents its space from the big networks.
The bonus of going with an MVNO is that you don’t pay hiked prices as they aren’t charging you to maintain a network infrastructure. Not only that, but they tend to offer more flexible contracts such as 30-day deals. This is great news if you want a SIM card where you can adjust the amount of data, texts and calls you need on a month-by-month basis.
Take giffgaff as an example. Currently, you can get 10GB of data per month for just £12 on their network. Better yet, there is no contract, and you can cancel anytime. Sounds like a pretty good option to us.
RESIST THAT TEMPTING ‘DEAL’
Misleading marketing has a lot to answer for when the question is ‘why is my mobile bill is so high?’ And the big mobile networks are most definitely guilty of this. Not only does the word ‘deal’ make you think that you’ve landed a bargain, but other clever slogans like ‘0% APR’ or ‘36 months’ tempt customers into costly (and often lengthy) contracts.
The same goes for upgrades on mobile contracts. We’ve touched on it already, but contracts can end up costing you more than buying a smartphone upfront. But you’d be none the wiser as a low monthly cost can make it all very appealing. Make sure you work out the costs before agreeing to anything so that you don’t end up out of pocket.
LEASE YOUR NEXT PHONE
How about thinking outside the box and leasing your next phone, instead? London-based tech startup Raylo, for instance, offer refurbished phones on a lease to their customers.
All their SIM-free smartphones are available on a 12 or 24 month lease, at the end of which they will collect your used phone and you can upgrade to a new one for free. And with prices starting from £22.99 per month for an iPhone 12, they’re a far cry from what you’d expect to be paying with the big networks.
Plus, if you choose to lease a phone, you’re not only saving on your bills – you’re playing a part in helping the planet, too.
Speaking of which, why not check out these 6 IDEAL ways you can play your part in saving the environment. You can add ‘lease your next phone’ as a seventh option! Wait, isn’t that our job? Anyway…