MOBILE contracts are going up for millions, but there is a simple way to cut your costs by as much as £300 a year.
If you’re on the wrong type of contract for your actual usage you could be wasting precious pennies – and a quick call to your provider could help cut your costs.
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It comes as O2 and Virgin Mobile are hiking bills by as much as £48 a year from April.
BT, EE and Vodafone are planning bill hikes of up to £74 a year come April, too.
Meanwhile, millions of Three mobile customers will have to pay up to £31 extra a year, following changes in just over a month’s time.
But a common mistake users make when taking out a phone contract is not knowing their usage needs – and most end up paying for more data than they need.
Typically texts and calls will be unlimited anyway – though you should always check as it can vary between contracts.
But unlimited data can makes your bills even more expensive – especially if it’s wasted every month.
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On the pricier end of the scale, some unlimited data contracts can cost up to £35.
That’s the case for GiffGaff’s unlimited “goodybag”, while Vodafone’s “Unlimited Max” costs from £30.
If you regularly stream or download movies or music, or use your phone a lot while you’re out and about, then having unlimited data can come in handy.
But users who don’t use as much data every month won’t get the same value for money out of these plans.
And many people will find they’re using less data than they used to if they’re now working from home more, for example.
Personal finance expert Pete Chatfield told The Sun: “Smartphone users who only use their phone for general browsing, social media and the odd video can use a limited data plan, which will often be as much as for or five times cheaper.”
How can I reduce my mobile costs?
According to Ofcom, the average mobile phone customer in 2020 used 4.5GB of data a month.
If this is your usage, you could get contracts from the likes of GiffGaff with more than enough data (15GB, in fact) for as little as £10 a month.
That means the majority could be saving up to £25 a month, when compared to the £35 a month you’d pay for unlimited data.
Over the space of a year that’s a saving of £300.
Vodafone offers data plans from just £6 a month, which includes 4GB of data, which is enough for many basic users.
But you should also watch you don’t underestimate your usage – as if you go over the allowance, you’ll be charged.
According to Uswitch, Vodafone charges £6.50 for every 250MB of data you use over your allotted amount, for example.
O2, which also owns Three and GiffGaff, charges £10.50 for an extra 1GB of data.
How can I check how much data I’m using?
You can check how much data you’re using by looking at your phone bill, app or calling your provider.
If you’re paying for too much data, you should be able to switch to a cheaper deal that’s more in line with your needs.
Online tools such as Billmonitor can match you to the right mobile contract using data from your mobile phone bills.
But check your contract before switching – while some providers will let you change your data plan any time, some might charge you for doing so mid-contract.
O2 offers flexible contracts to help you manage your monthly allowances, and Sky Mobile lets you increase or decrease your data allowance whenever you want.
You’ll also want to make sure you’re not still paying for the handset after you’ve paid off your monthly charges too.
You should always shop around for the cheapest available tariff for your needs though.
There is also help available for lower income users – eligible users can opt social tariffs from O2, BT and more that could help save hundreds on their bills.
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