How You Can Save Over £300 by Switching to a SIM-Only Mobile Phone Plan

At this time of the year, we all want to ensure our finances are all in order, whether it’s amending our credit score history to avoid bad credit and so forth. By the same token, strategizing on how we can further reduce discretionary expenses, especially our current mobile phone plan.

However, in this article, we will explain how you can manage to save over £300 per year by switching to a SIM-only mobile phone plan, where you can take control of your data allowance with no contract, no credit check and no worries.

Comparing Mobile Phone Plans

It’s important to note the difference between SIM-only plans and mobile phone contracts, which are usually a fixed-term contract of two years depending on your mobile network provider. However, SIM-only mobile phone plans are post-paid plans that do not bind you into a fixed-term contract.

Again, the outstanding benefit of SIM-only mobile phone deals are that it can cut your phone bill in half. The table below is an informative, as well as simplified comparison between a SIM-only and contract mobile phone plan compiled by Holly Niblett from comparethemarket.com.

Mobile Plan Benefits Disadvantage
Sim-only
  • You’re free to choose a provider – most SIM-only deals mean you’re not tied to any one provider and some contracts are as short as 30 days, so if you don’t like it you can swap (as long as you give notice as per any T&Cs, then you won’t be charged to change)
  • It could cost less– SIM-only deals tend to be cheaper in the long run compared to contract agreements because you’re not paying back the cost of a handset
  • You can stick with your phone– if you’re particularly attached to your phone you can keep it, just pop in your new SIM (you might need to unlock your phone first) and away you go
  • Less rigorous credit check– your credit history will still be checked out but the criteria you’ll have to meet aren’t so comprehensive compared to a contract deal

  • Handsets are pricey – the cost of a phone on its own can roll into hundreds of pounds, especially if you like your phones loaded up with features
  • Are you locked in? – you might need to unlock your phone if it’s tied to a network provider that’s different from your SIM provider
Contract
  • “Free” handset – although technically it’s not free, you’re paying for it in your monthly fee. Either way, it’s a useful method of getting the latest smartphone at a more manageable price
  • Hassle free – you know what you’re getting with a contract and even if you run over your allowance you won’t get cut off– as long as you don’t hit your upper credit limit on your tariff.
  • Build your credit rating – if you pay your bills on time and in full, this can be a good way to build up your credit score
  • Free gifts – some providers will offer freebies. Always a winner and depending on the gift this might be a clincher
  • Shackled – you’re tied into a set mobile network provider – potentially for up to 24 months – which is a long time if reception is poor where you live – even though there is a requirement for all providers to ensure a certain level of network cover – or you’re itching for a new phone
  • Credit check – you’ll undergo a check on your credit history and if it’s not so good, a contract deal may not be an option for you 
  • Exceeding your allowance – you may not have to worry about running out of minutes, but if you go over your allowance, you’ll be hit hard with high charges

Overall the advantages of SIM-Only mobile phone deals outweigh that of a contract, as we’ve learned that you can simply keep your current mobile device, you’re happy with. Perhaps, you’re simply waiting for your dream phone in a couple a months’ time and choose to opt for a SIM-only mobile plan.

Buying or Selling A Cheap Second-hand Mobile Phone

Without a doubt, buying or selling a mobile phone with minimal usage and scratches online might seem hard, but it’s easier than expected. For starters, there are several other ways of buying a cheap second-hand mobile phone to someone who wants it.  eBay and Gumtree are good sites to find interested buyers instantly.

To know more check out our previous article: How to Get Money for An Unwanted Phone, where we explain in more detail on slashing extra costs.

Flexsimba SIM-only Mobile Phone Plan Rates (June 2019)

Flexsimba’s fantastic Sim-Only mobile phone plan can be seen in the table below. Amongst other familiar mobile network providers whom over deals in a similar fashion.




1 Months

2 GB
Data (4G)

1000
Minutes

Unlimited
Texts

£10.00
per month

1 Months
1 GB
Data (4G)

1500
Minutes
Unlimited
Texts

£8.00
per month


1 Months
500 MB
Data (4G)

500
Minutes

500
Texts

£12.00
per month
(£25 Cashback)


12 Months
1 GB
Data (4G)

1000
Minutes

Unlimited
Texts

£13.00
per month

Conclusion

In short, the sum clearly shows the best way to keep the monthly costs down on for a mobile phone plan is to buy a cheap smartphone. In the same fashion, upgrade to a new device by selling your existing one while going for a SIM-only deal.

For example, for the latest iPhone XR, you would have to pay an upfront cost of £80 then £54 a month for 24 months. And would have paid out £3,316. As a result, it’s considerably more than if you were having bought a mobile phone and gone for a SIM-only.

Of course, if you bought the iPhone XR for £558.79 (eBay Price) and then paid £10 a month for SIM-only Flexsimba Deal. Again, you would have paid just £798.79.

Given these points, it’s important to keep an eye on your contract end date to prevent extra payments.

Like what you’ve read? Check out our latest blog post about 4 Tips to Reduce Your Mobile Data Allowance on how you can take control of your mobile network.