Are Mobile Phone Contracts a thing of the Past?

It used to be a case that for around twenty pounds a month you got the mobile phone you wanted and all the calls, texts, etc you wanted for a year. At the end of that year a newer phone was on the market and then you got either a free upgrade or a new deal.

These days you will be lucky if you get the phone you really want for free on a £45 a month tariff – which probably includes more minutes and texts than you will ever need!

In terms of a phone it used to cost you £240 for the phone and a years calls and over a 2 year period you’d spend £480.

But now it costs £540 for the year AND you are stuck for another year with a phone out of warranty that might not even work – and another £540, totalling to £1,080 for your phone!!

If you have problems with your signal it is also TOUGH.

Orange told us that as the phone works in some areas (funny as we move about with it a lot as it’s a MOBILE) then their legal obligations are fulfilled (basically). Even though it was agreed that we should have full signal at our home address and you’d be lucky to get 1 bar!

The question is really do we still need contracts? Yes they are a useful tool in you need a new phone and don’t have the cash up front, I agree. But if you do have the money to spare I advise you to go out and buy a handset and a pay as you go sim card – which gives you the flexibility to just leave/stop paying if you lose your job, can’t afford it any more for any other reason – or you find there is no coverage where you need it. Plus there’s no sudden expensive bill landing on your mat.

For example on Giff Gaff (who are basically O2) you can get:

250 mins, unlimited texts, unlimited Internet and free giff gaff to giff gaff calls for £10 a month PLUS £5 credit when you recommend a friend!

(There’s different plans to suit your needs including adding Blackberry services.)

So that’s now £240 for the 2 years – and the rest of your money for a handset (so that’s £840 LESS than the contract) – you can get some mean handset for that!!!

If you buy an iPhone straight from Apple they are really good at sorting out any problems with your handset – or just swapping it for a new one. Or if you are trying to save money you can always look at the many handsets available on Ebay.

Get your FREE Giff Gaff Sim Card CLICK HERE


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9 thoughts on “Are Mobile Phone Contracts a thing of the Past?”

  1. Such a good post. I took out an iPhone contract last year before I lost my job – what I thought was £30 a month with a one off few of £30 with 2000 minutes (I struggle to use 1000), 500 texts (still struggling to use these when the iPhone has so many other ways of contacting others) and some other stuff lol. What I hadnt realised was £30 a month didn’t include VAT… So in effect I pay £37 a month minimum. And I’ve lost my job so it’s been a bit of a pain but alot easier to pay the bill than attempt to cancel the contract and be left with a £500 bill! The stress of it all LOL

    • Ouch. Have you downgraded your plan? They usually let you go down one after a year but there is a thing sometimes they make it lower if you say you can’t afford it.

      Thanks for stopping by and commenting.

  2. I’m on a sim only contract with orange at the moment which is a fiver a month. I am a complete apple addict and will be getting the iPhone 5 once it comes out 🙂 I am v v tempted to just buy it from apple. I am saving about £40 a month from my old contract so that’s going into my imaginary phone fund 🙂


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