Mobile phones are an expensive purchase, especially if you want a handset that offers all of the latest features. Taking out a mobile phone contract which covers the cost of the handset also is one of the most popular ways of buying a new smartphone, however it can also be the most expensive. Although there is usually no need to make an upfront payment, the monthly cost of phone ownership can soon add up, especially if you use your phone often and want a tariff which offers a large amount of minutes, texts and mobile data. However, opting for a cheaper tariff and going over on your monthly limits can also get quite pricey. Here are some ideas for keeping costs down.

Work Out the Real Handset Cost

Often, buying a handset outright works out much cheaper than paying monthly for it over the lifetime of the contract, which is usually a minimum of two years. However, if you can’t afford to shell out the full cost of the handset, you may be able to find a deal which allows you to pay some of the cost of the phone upfront in return for a lower monthly price on your contract tariff. In order to work out the overall cost, add up the price per month over the minimum contract period, and if there is a charge upfront for the handset, add that on too. You now know how much that ‘free’ contract phone is actually costing you.

SIM Only Contracts

Often, people think that once their contract is up, it’s mandatory to upgrade to a newer handset. However, this is not the case, and if you think that your current handset still has a lot of life left in it, it’s possible to change your contract to a SIM only deal, which are a lot cheaper in price compared to handset deals. Another advantage of a SIM only deal is that there is usually no minimum contract period, meaning that you’re not tied down – this can come in useful if you’re taking some time to save up to buy a new handset outright.

Second Hand Phones

Some people shy away from purchasing second hand or refurbished handsets, however the truth is, you can often get a much cheaper deal. On some occasions, a refurbished handset does not mean that the phone has been faulty, but rather that is has been returned with the box opened and therefore cannot be resold as new. If you find a reputable supplier with a good name for refurbishing handsets and a warranty period, you can often get a much cheaper deal when buying a handset outright. Paired with a SIM only contract, this can save you a lot. If you find a great deal on a second hand handset which is locked to another network, unlockingsmart.co.uk is a company which can help, with affordable unlocking services for all makes and models of mobile and smartphone.

How do you save money on the monthly cost of your mobile phone, without having to compromise on handset features? Let us know in the comments.