Slash Your Phone Bill: Saving Tips for Phone Contracts

If your phone bill's burning a hole in your wallet, check out our tips and tricks.

There’s been a lot in the news lately about the soaring cost of mobile phone contracts, with some tariffs increasing by as much as 20% this April. If you’re getting burned by your bill, the good news is that you are not alone. Believe it or not, it’s possible to save money while still getting all the features and benefits you want. Here are some tips on saving money on your phone contract.

Find your perfect match.

The first step to saving money on your phone is picking the right contract. Before signing up for whatever’s offered, check that it’s right for you. It’s worth logging into your online account or app to see how much data, minutes and texts you actually use each month, as you may be paying for more than you need. Also, watch out for the length of the contract and any extras, so you’re not locked in for longer than you are comfortable with. It’s worth checking our smaller networks too – ones you may have never heard of can offer great deals such as GiffGaff, iD Mobile, Lycamobile, or even Asda or Tesco.

Check out SIM-only plans.

Rather than buying a new phone when your current one still works, think about switching to a SIM-only plan. These plans are typically cheaper than traditional contracts and offer more flexibility since you’re not tied into a long-term commitment. SIM-only plans allow you to keep your existing phone and switch out the SIM card, which is a great way to save money if you don’t need a new phone right now.

Pay upfront.

How about paying upfront for your new phone? The upfront cost will be higher, but your monthly payments will be lower, and you are likely to save in the long run, as you’ll avoid paying interest on your phone if you’re using a credit agreement. If you’ve got savings, this might also be the right time to use them to cover the upfront payment. If you want to save, try London Mutual Credit Union savings accounts.

Don’t be shy—negotiate!

Don’t be afraid to negotiate with your provider for a better deal. Many providers offer discounts or special offers to retain customers, so it’s always worth asking if they can do anything to reduce your monthly payments (threatening to quit can also work!). Unfortunately, being loyal to your provider doesn’t always mean you’ll save money, as you could end up paying a loyalty premium that’s higher than what you’d pay with a new provider. Companies offer new amazing deals every day to attract new customers, so take advantage of these deals and don’t feel like you have to stick with one network – it’s easier than ever to move everything across, including your number.

Saving Tips and Tricks:

  • You can buy a second-hand (Refurbished) phone in good condition for a fraction of the price of a new phone model. You can use companies such as Voxi, Giffgaff, Backmarket, and Currys.
  • Reduce your reliance on mobile data by using Wi-Fi whenever you can. To avoid eating up your monthly data allowance, use Wi-Fi at home, work, or public places like cafes – just ensure the wifi is safe using it for sensitive things like online banking.
  • Look at whether you can save money by bundling your mobile phone contract with services like home broadband or TV. When you combine multiple services, many providers offer discounted rates, potentially saving you money over time.

Charles Nyamukasa

Digital Marketing Apprentice at London Mutual Credit Union.

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