Credit Crunch tips for a cheaper mobile phone deal
October 27, 2008 2 Comments
The Credit Crunch, global financial slowdown, financial armageddon, call it what you will, we’re heading into difficult times with the likelihood of a recession that will last for quite a while. It’s time to tighten our belts and start watching the pennies.
After a couple of years looking into mobile phone tariffs and the best deals in the market I have learnt a few tips to save a few quid without resorting to locking your phone in a drawer or perfecting the art of 20 second conversations. Here are my top tips for saving cash, fast…
1. SIM Only saves you money
What is a SIM Only tariff?
SIM Only tariffs offer more value for money than standard tariffs because they don’t include a ‘free’ mobile phone as part of the deal. Although operators and retailers appear to offer you a mobile phone for ‘free’, you’re actually paying for it via a £10 to £15 invisible surcharge on your monthly contract.
O2 Simplicity - SIM Only
The general rule for Sim Only is that you’ll pay around £10 less per month for the equivalent amount of minutes and texts because the operator is not having to subsidise the cost of a new mobile phone. The other great thing about SIM Only is that you only have to sign up for a very short minimum term. Most SIM Only tariffs require just 30 days notice if you want to switch to another deal with another provider – no 18 month commitment!
Virgin Mobile SIM Only
How can I save money with SIM Only?
If you’re outside of your minimum term with your current operator and you’re happy with your current mobile phone you can switch to a SIM Only deal with any operator immeditately. You’ll save at least £10 per month in most cases and you can keep your phone number.
SIM Only is available with O2, Vodafone, T-Mobile, Orange and Virgin Mobile.
Compare the cheapest SIM Only deals
2. Go Pay As You Go (PAYG)
If you really aren’t using your phone much you could switch to Pay as you go. Most of the operators offer extra minutes and texts that give similar value to a Pay monthly contract if you regularly top up your credit.
With PAYG you can normally use your existing phone (you may need to request an unlock code from your current provider). You can also transfer your phone number with you to another provider so don’t let this be a barrier.
Compare the lastest Pay as you go deals
3. Buy Online
Most operators and retailers offer better value deals or tariffs if you buy online.
- O2 offer a special set of online tariffs that offer more minutes and texts than you’ll be offered on the High Street.
- Vodafone offer a discount of £5 to £10 if you buy online.
- Carphone Warehouse offer free gifts exclusively if you buy online, such as a Nintendo Wii or Playstation 3 with if you sign up for a new provider through them.
- T-Mobile offer £5 off all tariffs if you buy online and additional discounts if you go for a higher priced pay monthly FlexT tariff.
4. Buying a phone on eBay
If you really want a new phone but don’t want to sign up to a new 18 month contract at a high monthly rate you can buy just about any new mobile phone on eBay. Yes it’ll cost more up front than a cheap or free
eBay
phone from your operator but you can partner the phone of your choice with a SIM Only tariff and save £10 to £15 per month – that’s the equivalent of up to £270 over 18 months!
5. Selling a phone on eBay
Alternatively you could get your hand on some cash by signing up for a new contract with a new phone and then selling the new phone and/or free gift on eBay. Now is the perfect time to sell a new Nokia phone, Nintendo Wii or Playstation as Christmas approaches. Everyone’s a winner!
Got any of your own tips for saving cash when buying a mobile? Let everyone know by adding a comment to this post! 
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Though the idea above may sound like a great idea, in fact can be a false economy. It is true, there is nothing for free in this world, so when I get a phone from a network I will eventually be paying for the handset over time, but I can be assured that my phone is under manufacturer warranty for a year, if I buy used there is no warranty, really what is the true price differential? As it becomes a gamble if my secondhand phone is reliable or not. Not to forget it’s secondhand, so will be second rate and look like a dinosaur compared to your peers!
it’s not really a false economy if you are saving money and getting better value for money in terms of the amount of minutes and texts you get for the same price as what you would pay on a long term contract. Plus how many people actually care about the warranty on a phone? You also dont have to buy a second hand phone if you have one already from an existing phone contract.