How do I reduce my mobile phone bill?

A phone bill is two things bundled together: the handset and the airtime. Once the handset is paid for, many contracts simply continue at the same price. Separating the two, and matching the data allowance to real usage, is where the money is.

What you'll need

• Recent bills
• Your phone's data usage screen (optional)

Step by step

1. Check whether your handset is paid off.If you took a contract including a phone, find out when the handset element ends. Many contracts continue at the same price afterwards, which is money for nothing.
2. Check your actual data usage over several months.Settings, Mobile Data on the phone, or your account. Most people pay for several times what they use.
3. Compare SIM-only deals against that real figure.SIM-only is dramatically cheaper than a bundled contract and is the right choice for anyone keeping their current phone.
4. Check coverage before switching network.Coverage maps at home and work. The cheapest network is poor value if it does not work where you live.
5. Look at smaller networks running on major infrastructure.Many low-cost providers use the same masts as the big networks at much lower prices. Coverage is identical.
6. Get a PAC code to keep your number.Text PAC to 65075 in the UK, or ask your provider. It is free, and switching takes one working day.
7. Turn on wifi calling if your signal is poor at home.It uses your broadband for calls, which improves reliability and reduces battery drain from signal hunting.
8. Check for old add-ons and roaming extras.Insurance, caller packs, international bundles added years ago and never removed are common on long-held accounts.

Tips

• Buying a phone outright and taking a SIM-only deal is usually cheaper overall than a bundled contract, though it needs the cash up front.
• A refurbished phone from a seller offering a warranty costs far less than new and is generally indistinguishable in use.
• Set a data alert rather than paying for a huge allowance. Most phones can warn you at a threshold you choose.

Common mistakes

• Staying on a contract after the handset is paid off — You continue paying for a phone you own outright, often for years.
• Buying an allowance based on a worst-case month — Paying for 100GB to cover one unusual month is far more expensive than occasionally buying a top-up.
• Switching without checking coverage — Price means nothing if the signal does not reach your home or workplace.

Questions people ask