IF YOU are on a monthly mobile phone tariff, you need to crunch the numbers carefully to avoid making a wrong and expensive call.
Too many mobile phone users are throwing money away by paying for data they never use or a handset they have already paid off.
As tariffs become more complex, and many people bundle their mobile with broadband and digital TV services, it is easy to lose track of what you are paying for and what you actually use.
WRONG NUMBERS
Britons are collectively paying for 143 million gigabytes worth of data every month that goes unused, research from uSwitch.com shows.
The price comparison and switching service found that one in five mobile users has no idea how much data is included in their package, while a quarter are unaware of how much they use.
The losses can be huge, with earlier research from Citizens Advice revealing that mobile customers overspend by £300 on the average two-year contract, often because sales staff recommend overly expensive tariffs.
Ernest Doku, uSwitch.com’s mobiles expert, said that with so many contracts now offering sizeable data bundles, customers can easily fall into the trap of thinking they need maximum gigabytes: “By paying for data you do not use you are simply wasting money.”
CHECK IT OUT
Mobile phone suppliers typically show your monthly usage through an app or their website, otherwise you can check your phone settings or download a stand-alone app such as WalletSaver.com, which also allows you to compare mobile deals.
Doku said work out roughly how much data you need and give yourself a slight buffer for peace of mind: “You can also set data usage warnings or a cap to make sure you do not exceed your limit.”
If your usage varies significantly, some packages allow you to adjust how much data you are using on a month-by-month basis, or carry unused data into subsequent months.
Doku said these flexi or roll-over contracts give you more control over your monthly spend: “A word of warning: they often require customers to actively update their usage at the end of each month.”
Network O2 recently launched a new flexible tariff that allows users to vary the cost every month, depending on how much data they anticipate using.
SIMPLE CHOICE
Another way mobile phone users ring up unnecessary costs is to languish on an old contract.
Vix Leyton, consumer expert at Broadbandchoices.co.uk, warned against staying in mobile contracts beyond your initial agreement, especially if you took the ‘free’ handset option with the cost of your phone deducted every month for an initial period: “If you remain on the contract after the handset is paid off, you are literally paying money for nothing. Work out when your contract ends and be ready to move onto a cheaper tariff. If still happy with your phone you could save money by switching to a Sim-only contract.”
These can cost less than £10 a month and often have greater flexibility.
Leyton added: “They can give you value for money without the commitment of a traditional contract, or you can use it as a stopgap while you wait for a handset you like.”
SELL IT ON
Unshackled.com allows users to buy their phone and Sim separately, from a choice of 16 networks, with the freedom to change phone or Sim when a better deal is available.
Finally, you may be able to earn cash when upgrading your old handset, through recycling your old one on a site such as SellMyMobile.com.
The site’s telecoms expert Thom Bryan said the average handset sells for £130 and newer phones command an even bigger premium: “The 128GB iPhone 7 sells on average for £332, which you can invest into your next phone.”
Your mobile may be one of life’s little essentials, but you still need to dial down the costs.
