Whether you’re trading in an old phone or shopping for a new one, it’s essential to know how much you can expect to pay. This is especially relevant if you’re on a tight budget.
In the UK, the average new mobile phone now costs £580. This price includes both the device and monthly service charges (contract).
And frankly that’s a shocking price, but it’s not too surprising. Everything is going up in price, mobile phones included. Below we reveal several incredibly easy ways to reduce your mobile phone costs during 2023.
- Switch to PAYG
Pay As You Go phone plans are ideal for those on a tight budget and who desire the flexibility to switch providers whenever they please. They’re also an excellent choice if you plan to travel abroad. And no, they’re not just for those on benefits!
Most PAYG plans offer limited data allowances, so it is important to consider how much data you use each month when choosing which plan to choose. For instance, if streaming video or using social media frequently while traveling, look for a plan with at least 5GB of storage.
One issue with prepaid plans is that mobile virtual network operators (MVNOs) don’t run their own networks, meaning they may not always get as much data as customers of the big three carriers in the UK (O2, Vodafone, Three).
- Renew Your Contract
If you need to stay connected, whether for work or social reasons, having a working mobile phone is essential. Contracts offer the perfect solution in this regard with many great deals available.
Prepaid contracts often provide unlimited data, such as those by O2, which can be a great way to save money. But it’s essential that you monitor how much data you use each month, so you don’t end up overpaying for extra data usage.
Another significant advantage of contracts is the option to upgrade every two years. This can be an excellent way to get the newest smartphone model without needing to spend a large amount upfront on a brand-new handset. You can for example get the latest iPhone 14 Pro Max from only £28 a month at places like Uswitch or Foned.
However, contracts tend to be more costly than SIM-only deals (see below), and can increase in price over time; therefore, it’s essential that you understand your contract details before signing on the dotted line.
- Don’t Overlook SIM Only
Nowadays, one of the cheapest ways to obtain a mobile phone in the UK is to buy it outright, then go for SIM Only via one of the cheap deals around. This means you only pay for what you use – minutes, texts or data – on a per-minute, per-text and per megabyte basis. You already own the phone so you don’t pay for it via monthly fees.
Alternatively, you could opt for a daily rate plan, which charges an established amount each day. These tend to be more costly than purchasing prepaid minutes but may be suitable for those who use their phones frequently.
These plans can be found from many low-cost mobile networks – known as Mobile Virtual Network Operators (MVNOs) – that operate on the same network as major carriers. MVNOs tend to be much cheaper and provide greater flexibility than their larger counterparts, making them an attractive option for those wanting more control over their cell phone expenses.
- Lease a Used Phone
Today’s average mobile phone cost in the UK is significantly higher than two years ago due to an increasing popularity of smartphones that come equipped with a multitude of features.
Every year, new smartphone models come out and people love to explore all of their features. Leasing allows consumers to own the newest phone without needing to invest a substantial amount of money at once. At the end of the contract, you hand it back, so the costs are less. It’s a bit like leasing a car, you don’t ever own the phone, but that’s okay.
Additionally, leasing offers regular upgrade opportunities. Many lease agreements permit consumers to upgrade once a year or after 12 payments have been made.
However, leasing does come with certain stipulations and consumers should read the details to decide if it’s suitable for them. For instance, those wishing to keep their phones after having leased them must do so through a specific carrier otherwise they could lose that privilege.
Your blog provides valuable insights on reducing mobile phone costs, catering to individuals on tight budgets. The tips you share, from switching to PAYG plans to considering SIM-only deals and leasing used phones, empower readers to make informed decisions. By implementing these strategies, readers can effectively manage their expenses while staying connected. Well done!