Dare to Share

We’ve all got one but how much are you spending on your phone bill each month? I’m sure thousands of you are spending way too much on your phone bill so I’ll try to put a stop to that right now. Read on…

There’s a few things to note before we begin:

1. Don’t be fooled into thinking that Pay as you Go (PAYG) deals are cheaper than Pay Monthly. Yes, if you only use your phone for emergencies then you’re probably best sticking with PAYG but most of us will benefit by switching.
2. Do you really need a new mobile phone? If you’re happy with your current phone then why not stick with it and either go with a SIM only deal (where you’re on a 30 day rolling contract and you don’t receive a new phone but you’ll still receive inclusive minutes and texts each month) or if you find a better deal that includes a new phone then sell that phone on eBay, saving yourself even more money over the course of your contract.
3. Are you still in contract with your current provider? If so, give them a call and ask them how much it would cost to buy yourself out of your contract - it can still be cheaper to do this and get a new contract rather than sticking with them - remember to factor this in though when doing your calculations.
4. Are there any networks you can’t use - most offer decent enough reception, wherever you live, but if you’re out in the sticks then remember to check their website for the quality of reception where you live. Most companies offer a 14 day money back guarantee for situations like this but check before you buy.

Now that’s all done here’s a step-by-step guide on how to get the best deal:

1. Calculate how much you use your mobile phone. If you have a pay monthly tariff then either look back at your previous bills and work out, on average, how many minutes and texts you use each month or call your current provider as they may also be able to help you with this. A lot of them won’t though so you may just have to do it yourself. A bit trickier with a Pay as you Go phone as you’ll need to work out how much you spend a month on topping up and then calculate the call and text charges.
2. Search around the web for deals that suit you. Now that you know how many minutes and texts you use a month this is where the fun begins - trying to better your current deal - There are a number of websites that can help you with this such as onecompare.com and moneysupermarket.com but it’s also worth checking out the individual network’s websites for offers they may provide. Check out the Useful Links section for even more links.
3. Call your current provider. Now you’re armed with the best deal you found in the previous step you should call your current provider to ssk for your PAC Code (this is the code you need to transfer your phone number between networks). They should then ask if there’s anything they can do to keep you with them. Tell them the best deal you found and what new phone you’d like. Most companies want to keep you even if that means a drastic reduction in your monthly bill. Remember to be strong - you’re in command at this point. If they don’t offer you the same or better deal then request your PAC Code and leave them - it’s their loss - not yours.
4. Switching providers. When you receive your PAC Code (usually no longer than 7 days) then you’ll be able to go with the best deal you found in Step 2. Do this and just remember to go through this process again when you’re nearing the end of your new contract. You’ll always be able to save money. Trust me!

A few other ways to save even more:

1. Use a cashback site to save even more. These get paid by the mobiles phone providers for each acquisition they make. So check out sites including Quidco, Cashback Kings, Top Cashback and We Promise To and earn anything from £1 to £150 simply by clicking through to their website.
2. Sell your new phone on eBay. If you’re happy with your old phone but you’ve found a great deal with a new phone then sell the new phone on eBay. Check eBay’s past listings to get an idea how much you could earn.
3. Go for a cashback deal with the mobile phone company (This is not the same as a cashback site). This is where you pay the full line rental each month and then receive a chequeback at set intervals - you can save an absolute fortune by doing this but you also have to on-the-ball when it comes to the requirements. You’re usually required to send a specific bill to a certain address between certain dates and make sure you send it Recorded Delivery. I’m still a little wary of certain companies that offer these deals but if you use a reputable one then you should be fine, but make sure you read the small print. Dial-a-Phone and Phones 4u are two such companies.

In the Real World

A friend asked me to help him find a better deal than what he was currently on… Not a big challenge as he was still on the same tariff he’d signed up over 10 years ago! Before I go on, don’t expect your provider to be kind and tell you that you’re paying them too much money and you’re on the wrong tariff - you need to do this yourself. Back to the story… He was on a £20 a month contract which only included 75 minutes and no free texts. He was regularly going over this and bills, on average, were £35 per month. After calling Orange and asking for his PAC Code he was then put through to some very nice people (this is what tends to happen) and we managed to negotiate a new contract which included 400 minutes, unlimited texts and a free Nokia mid-range Nokia phone all for £15 per month. This could potentially save him over £200 a year!

I, too, recently changed my contract even though I was only paying a reasonable £10 a month with Vodafone (150 mins, 100 texts). I fancied an iPhone but after calculating that it would cost a minimum £729 over the course of the 18 month contract I needed to work out a way to get it much cheaper - here’s what I did: Purchased an 18 month contract o2 contract through Phones 4u at £35 per month (600 mins, 500 texts, unlimited web) but also received £65 cashback through Cashback Kings and £420 cashback over the course of the contract with Phones 4u. This will then cost £145 over the 18 months. I also received an LG phone, which I sold on eBay for £110 (reducing the total amount to £35). Then purchased a second-hand iPhone (although this was actually brand new) on eBay for £250 (with 6 months of the warranty remaining in case it did break). So in total I am paying £285 for the iPhone instead of £729 - a saving of £444 over the 18 months.