Looking to buy a new mobile phone? Coming to the end of your contract? Take a few minutes to see if you should stay or switch to reduce the cost of your upgrade and phone bills. Plus, find out about hidden costs, whether you should insure your mobile phone, and the help available if you miss a payment. 

Looking for a new mobile phone?

Getting a new phone can be expensive – especially if you want the latest model. But there are a few things you can do to keep your costs low:

• Do your research. Is it cheaper to buy the phone you want outright or as part of a contract? Use comparison sites to shop around and help you find the best deal.
• Only pay for what you need. Don’t use much data? Then don’t sign up to an expensive unlimited data plan. Match your deal to your needs.
• Haggle with your current supplier. If your contract is ending, they’ll want to keep you and might offer you some cheap deals.
• Happy with your current phone? Then stick with it. A Sim-only deal is much cheaper than a contract that comes with a phone.

For more tips on cutting the cost of your mobile, visit MoneySavingExpert.

Check you’re on the right deal

There are two main things you need to do to make sure you’re on the best mobile phone deal:

1. Check you’re not paying for calls, texts and data you’re not using, or regularly going over your allowance and getting expensive bills.
2. Shop around using different comparison sites. It’s always a good idea to use more than one comparison site to make sure you’re getting the best deal.

Avoid unexpected phone charges

Calling numbers that start with 09, 0871, 0872, 0873 and 118 will be more expensive than regular phone calls. Texting mobile short codes costs more as well.

Some mobile phone companies can make sure you don’t go over your monthly limit by blocking calls to premium numbers or cap spending beyond your contract. Contact your provider to find out if they can set this up for you.

Don’t let your children run up your bills

Lots of apps and games are ‘free-to-play’, but contain ‘in-app’ purchases. This means that downloading the game might not cost any money, but you might be asked to pay for features when you start using it.

To avoid getting a big bill, keep an eye on what your children are playing and read the small print around in-game purchases. To avoid getting a big bill, keep an eye on what your children are playing and read the small print around in-game purchases. It could also be a good opportunity to have a conversation with them about money, see more in our guide How to talk to your children about money.

Mobile phone contract ending – should you stay or switch?

When your contract is ending, your current supplier will usually try hard to keep you. Your first step is to give your network operator a call. Ask about the best package they can offer you, and then follow up by asking about your typical usage (minutes/texts/data downloads). Getting this information will:

• help you compare deals on price comparison sites
• warn your supplier that you might switch – which will almost certainly get you transferred to the retention department. Their job is to convince you to stay, and they’ll usually offer deals and discounts you wouldn’t see otherwise.

If you’re offered a good deal, you might want to stay where you are. But before you do, see what else you can get, based on your current usage.

Pay-as-you-go or pay monthly?

With mobile phones you either pay for exactly what you use in minutes, texts and data –pay-as-you-go. Or you get a set fee that includes a range of services – pay monthly.

The best option for you depends on how much you use your phone and what you use it for. On a pay-as-you-go tariff, you pay for every call, text or chunk of data you use. If you rarely use your phone, this is probably the cheaper option. However, if you use your phone more regularly, it might work out cheaper to pay a monthly fee, which includes a certain number of call minutes, texts and data.

Check coverage in your area

If you decide to switch, don’t forget to check if the new supplier has good coverage where you need it. The Ofcom website has links to coverage checkers for all the main suppliers.

What if your provider raises prices?

If you have a contract and your provider decides to raise their prices, they must:

• give you one month’s notice, and
• allow you to switch to another provider without paying a penalty.

Should you insure your phone?

Whether you should insure your phone generally comes down to three things:

• The value of your phone – if you own it outright.
• The contract repayments if you have a mobile contract
• The inconvenience of replacing a lost or damaged phone.

If you do decide to take insurance out, be aware that:

• mobile phone insurance doesn’t have to be taken out with your phone provider – many third party insurers can provide cheaper protection
• cover can sometimes be provided with your bank account, so check before you buy.

Make sure you check exactly what your phone is covered for before signing up.

Struggling to pay your phone bills?

If you don’t have a landline, your mobile phone is a vital connection to other services. So it’s important to keep it if you can.

If you need help, contact your provider as soon as possible to explain the situation.

This might be your first experience of debt. Remember that it’s important to keep up with your payments. This isn’t just so you don’t lose your connection, but also because it could affect your credit score if you don’t.

Many providers have support in place to help you, including:

• changing your bill date
• setting up an affordable repayment plan
• moving to a different tariff
• lowering your spending cap
• not charging you penalties such as late payment fees.

It’s best to only use your phone when you need to.

If you’re struggling to pay your bill your provider shouldn’t disconnect you. This is unless it’s a last resort when all other options have been explored. Some providers offer low-cost plans to help you make mobile calls and get online if you’re getting certain benefits.