The Ultimate Guide to Phone Contracts

Majority of mobile users in the UK choose a phone contract deal over PAYG and Sim-only contracts. Majority of these people also overspend on their phone bill according to a recent survey. To avoid joining those who pay more than they should on their phone bill, here is a quick guide to phone contracts, which hopefully will help you understand the deal more and eventually make the right decision.

What are phone contracts?

Phone contracts are the type of phone deals that offer mobile users a choice of handset and bundle plan. You get to choose a new phone without paying for it upfront. Instead, the cost of the phone is included in your fixed monthly fee. Most phone contracts are available on a 24-month term, which means that you’ll be tied to paying a monthly fee until the 24 months are over. To know more about phone contracts, go to

Who are phone contracts for?

Phone contracts are for people who want a new handset but can’t fully pay for it in cash. If you’ve been eyeing the latest handset from Apple or Samsung, you can apply for a phone contract, get the phone and pay a monthly fee instead of the one-time payment. This type of phone deal is also ideal for people who regularly and frequently use their phones for calls, texts and Internet browsing. With a phone contract, you’ll be able to get a bundle plan inclusive of your monthly phone service allowance.

How much does a phone contract cost?

The typical cost of a phone contract ranges from £10 to £35 per month depending on a number of factors. For example, if you opt for a high-end handset like the iPhone 6S or the Samsung Galaxy S7 then you are likely to have a high monthly fee. On one hand, if you choose a budget smartphone coupled with a modest allowance for your call, text and data then your monthly fee may be just the minimum amount.

Why choose a phone contract?

You should only choose a phone contract if you’re sure that the advantages of the phone deal outweighs the disadvantages. If you know that you’re going to save money with your bundle plan then it makes perfect sense to sign up. If you’re sure that you need a new phone and you can afford the monthly fee then you’re on the right track. As long as you picked the right plan and you opt for a contract length that’s well suited with your budget then you made the right decision.