Good Call – How To Reduce Your Phone Bill

Chris Wood writes on behalf of Hanover Sterling, a finance company offering debt management plans.

Three-quarters of mobile phone subscribers in the UK are wasting an average of nearly £200 a year through being on the wrong phone contract. The study, conducted by OFCOM approved mathematical study group Billmonitor, makes interesting reading for anyone trying to cut down their monthly expenditure.

What the study shows is that the fear of being charged excessive fees for exceeding the ‘free’ minute allowance in phone contracts is driving users to sign up for contracts three or four times bigger than their usage requires.

Just 25% of UK phone users actually meet their monthly allowance, according to the research which compares users’ real-life bills to available phone deals. But with 8,134,979 different contract permutations on the UK market, is it any wonder that a lot of people are struggling to find the right deal?

In a short space of time, a mobile phone has gone from being a luxury item to something approaching a necessity. The mobile communications sector is one of the most profitable in the UK, yet it is also one of the most competitive. There are very good deals to be found if you know where to look, and reducing your mobile phone contract can really help you if you’re struggling with your finances.

The first step is to analyse how you use your phone; a rough understanding of how many minutes of call time, text messages and data allowance will help you find a deal that works for you. Also ask yourself whether you really need a smartphone. There are some great deals to be had on more ‘traditional’ handsets that still provide you with email and internet access.

Once you know what you’re looking for, try the excellent calculator on Billmonitor’s site, and see how much money you could save each month.