Many of us find ourselves on a phone contract these days; when mobile phones first came on the market the majority of us used to be on pay as you go.
With the introduction of the internet and smartphones, the contract soon took off, starting at low rates of £10-15 per month they have steadily grown to £40 and £50 per month to cover the cost of devices.
The contract cost generally covers the cost of the handset and a monthly contract for internet, texts and calls. This month it was discovered that millions of people who don’t upgrade their phones continue to pay inflated rates after their contract has expired. In theory, it should drop to just the rate of your data, excluding the handset you’ve now paid for.
Our guess is as good as yours when it comes to pricing the iPhone X contract.The iPhone 8 costs around £50-60 per month with the handset alone costing £699 we can only assume the iPhone X will average out at £110-120 per month.
With these prices a long way from the £15 they used to be, it may be worth looking for ways to save money.
The best way to start saving it to look at how much of your data you’re actually using, from calls to internet and texts. With the rise in WhatsApp and iMessage, we’re pretty confident you don’t text as much as you think.
Looking over your bill for a few months running you will get a greater understanding of how much data you currently use. As many contracts for high-value phones come with unlimited calls, texts and data it’s worth considering if you really need unlimited as this is where the saving can be made.
Alternatively, if you’re willing to put the money up front, you have the ability to make a saving overall. For example, the iPhone 8 is £699, if you have this on a 24-month contract the phone works out at £29.12 per month plus a £9 per month contract (4gb data, unlimited texts and calls). Over 2 years this works out at £915.
On contract….With the lowest upfront cost of £9.99, your contract will cost £62.99 per month (20gb of data, unlimited calls and texts). At the end of your two-year contract, you will have paid a staggering £1,521.75. Unfortunately, this overpayment of £606.75 is for the pleasure of not having to pay upfront. Although it can be tough trying to find the money initially, buying a phone outright can save you the cost of your next handset when you’re ready to upgrade.
If you’re thinking, that’s for 4gb, not 20gb; the closest deal is for 20gb is £16 per month, still leaving you with an enormous saving of £438.74.
If you’d like to save some extra cash to buy your next phone outright, why not sell your old mobile (or mobiles) to Cash in Your Gadgets. Remember to pay a monthly fee that you would have been willing to sign up to, into a separate account and that way you can be sure to have enough for an upgrade in 2 years time.