Switching your mobile phone provider once your contract is up could help you save hundreds of pounds a year.
According to new research by iD Mobile, Brits could be losing out by not doing anything when their contracts are up. Most mobile contracts include the price of the handset and the usage (texts, calls and internet allowance) but the costs of which can vary drastically across networks.
The cost of paying for your phone doesn't automatically decrease when you have paid off the handset, meaning you're still paying for the phone as if it's brand new by the end of your contract. Challenging this could save you up to £35 a month.
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Phone networks have a legal obligation to inform their customers when their contract is up, yet a fifth (18%) have no idea when theirs end and a further 28% don't plan changing their contracts, assuming changing their provider would be more expensive.
Wales Online reported a further 18% won’t be upgrading their handset or switching networks as they think it is too much of a hassle – effectively paying more than actually need to. Additionally, two fifths (39%) of UK adults wouldn’t consider switching to a lesser-known mobile network, with 50% concerned that the network coverage may not be as good. This is in spite of the fact that the lesser-known mobile networks are all powered by one of the UK’s four major networks, benefiting from the same level of coverage.
Despite this, 76% said they would change their provided if they knew they could save up to £13 - £15 a month. Sue Hayward, Personal Finance Expert, says: "Every penny counts in the current cash strapped climate and it’s shocking that one in three of us seem happy to waste a whopping £156 a year on average, on our mobile bills, and in some instances over £360 a year, according to iD Mobile’s research.
"Despite one in two of us thinking we overpay for our plans, we seem reluctant to shop around and switch when comes to our mobile provider; which is curious considering how open we are to switch providers on other household bills to save money. Nearly half of us don’t think our mobile network rewards our loyalty – so it may be time for consumers to put loyalty aside, and switch providers to save some cash."
She added: "Taking a few minutes to check your mobile contract, haggling for a better deal or switching to a provider like iD Mobile, can pay dividends and put pounds back in your pocket”. With the cost of living due to skyrocket this year, Money Saving Expert Martin Lewis has urged people to claw back money wherever they can.
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