Are you wasting £130 on your mobile phone?

by Money Doctor Tuesday 22 January, 2008

Mobile phones are remarkable aren't they? You can listen to music, watch videos, search the Web and even record dramatic events as they happen.

And occasionally you just might want to use it to send a text or make a call.

If you are one of those people, you should know confusion about phone tariffs could mean you are paying up to £130 extra in charges every year!

Moneysupermarket says that you might not know how many minutes or texts are included in your monthly package, or how many you actually use. This leaves you open to incurring extra charges, which can add up to £130 in a typical year.

Put it this way; it means that all of us who use mobiles are wasting nearly £8 billion a year because we don't know the terms of our deals.

According to the information, the typical mobile phone package gives us 166 voice minutes and 133 text messages per month.

However, Moneysupermarket found that on average, we each use an extra 23 minutes and sends 23 texts over and above our monthly allowance.

Mobile phone industry stats suggest there are more than 65 million active mobiles in the UK, so collectively these extra charges are costing us billions.

The biggest problem appears to be a lack of awareness of contract details, and about how we use our phones in practice:

  • 1 in 7 of us do not seem to know many free minutes we have
  • 1 in 6 of us were unsure how many texts are included in our deal
  • 1 in 6 of us can't say what we pay for our monthly line rental
  • 20% of us admit to getting bills for more than we expect
Rob Barnes at Moneysupermarket's urged consumers to read through their phone contract and make sure they understand the cost of any extra calls or text messages:
"The reason mobile phone operators can offer such good contract deals is by charging customers for additional services," he said
"If they're using up all their allowance it's worth considering a move to a different tariff with more inclusive minutes and texts - it could save a lot of money in the long run," he added.
So, if you feel you are wasting up to £130 on your mobile then you should pay and go...somewhere else!

Why not look at what other mobile phone contracts are on offer and switch?

Mobile phone cashback rip off

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Comments

sylvia says:

Tuesday 22 January, 2008 / 16:01

i  used to be with T mobile but they have a crap reception. so you might be getting a cheaper deal but when you need to make that most important call you get let down. In future befor i change providers i ask friends who are already with the network provider.

Nicola Marks says:

Tuesday 22 January, 2008 / 16:01

If you join T-mobile they have a really good tariff called Flext which is a total amount you can spend on a mixture of calls and texts - could be all texts, or all calls or a mix of the two.  Highly recommended and really good value in my opinion.

Sally Hughes says:

Tuesday 22 January, 2008 / 16:01

02 Online - £35 600 minutes and 1000 texts!

Bargin!

Destiny says:

Tuesday 22 January, 2008 / 16:01

Tmobiles flex plan is excellent... I now received 900 anytime mins aswell as 5000 weekend minuites...yes u read right....5000 all just for £30.......

Keith says:

Tuesday 22 January, 2008 / 17:01

Tmobile flext can be a nightmare - if you go over your allowance call charges are exhorbitant

pinksheep says:

Tuesday 22 January, 2008 / 17:01

If you're not bothered about getting a free upgrade every year, I think the best one is the O2 offer. 500 free mins and 1000 texts all for £20 a month...and it's a one month contract so you can opt out at any time.

Leroy says:

Tuesday 22 January, 2008 / 17:01

Are you really going to use 5000 minutes during the weekend for calls per month or 1000 text messages? The mobile companies main ploy is to get people onto long monthly contracts thus guaranteeing and locking in profits. Nothing wrong with that but it's good to realise the marketing ploys they use like unlimited, 'free' and other dubious terms

Stephen says:

Tuesday 22 January, 2008 / 18:01

Stayed with 3 for a second contract only 12 months, brand new phone 500 mins 100 texts all for £15 a month, thats what I call a good deal

Jemma says:

Tuesday 22 January, 2008 / 18:01

I'm on a pretty good deal at the moment with Orange - 600 minutes per month with unlimited texts (usually use up to about 500... but never know on that busy month could be handy to have more) for £35 per month.

They also offered £180 cashback which is broken down over the 18 months, meaning it's only £25.

Best deal I've seen.

vijay says:

Tuesday 22 January, 2008 / 18:01

sorry guys and dolls the best deal is with 3 g .i get 1100 min 300 texts and free skype to skype calls and also 300 minutes to any 3 g  all for a mere 27.00  per month

Chris says:

Tuesday 22 January, 2008 / 19:01

Hmmm, 5000 free minutes over the weekend.  Thats the best offer I have seen, They can keep the free minutes, but I would like to see the weekend that lasts 5000mins. Mine are only 2880 long. (Saturday, 24hr * 60mins = 1440  * 2 "Sat Sun")  

5000mins = 83hours which is like 3.47 days!!

God, I bet the marketing team are rolling about laughing at the silly people that took out that contract for 24months!!

jade blundell says:

Tuesday 22 January, 2008 / 19:01

3 excellent best contract around dont forget the customer service that goes with the contract 3 are free keep track on your phone how how much usage you have left so no going over free to phone for surport can get that on any other contract go 3 you are the best

john owen says:

Tuesday 22 January, 2008 / 20:01

I found that some providers like 02 are always at least two days behind in their information but virgin give you figures for texts and minutes left within seconds of calling them on a free number!

anita says:

Tuesday 22 January, 2008 / 21:01

3 are awful for changing your contact over the phone then when you insist on the 14 day change of mind, and request returning to your previous contract and paying for upgrade on phone they make you wait a month then only give you half the previous contract back!! but bill you straight away for upgraded phone. definately would not recommend 3

Andi says:

Wednesday 23 January, 2008 / 00:01

3 is the best for me. 500 mins and 100 texts for £15.00 and top phone every 12 months.  I have been with them for 4 years.  Early days were nightmare with little coverage but now very good.  you can check really easily on how much you've used so I never go over my allowances by accident.

Rampage Jack says:

Wednesday 23 January, 2008 / 00:01

With 3g i get 200 mins and 750 txt per month for £18 with free mobile upgrade - 12 month contract. I think this is an excellent deal i got for my wife who never uses this amount of mins but does around 400-500 txt per mpnth. 1 problem with 3 is the limited number of phones you can use with their services she likes the Samsung slide phone but can't get them unlocked to work on this network.

Jaine says:

Wednesday 23 January, 2008 / 11:01

Orange is the best for me,600 anytime minutes unlimited txts and free broadband. just upgraded my contract with same deal plus ipod nano for £35 a month on line bills. Bargin

Sylvia says:

Wednesday 23 January, 2008 / 14:01

Everybody is going on about minutes and text, what about reception, usuage abroad? I think orange and vodapnone are the best. dont get carried away by minutes

Joanne says:

Wednesday 23 January, 2008 / 17:01

I am on T-mobile flext 35 which gives me £180 of combined texts and minutes for £30.  This is great for me as I never know which I'll use the most of on a month to month basis.  The best thing about this contract for me is the weekly free text message that tells me how much allowance I have left so I know if I'm getting close to my limit.  Fantastic for me!

Roz says:

Saturday 26 January, 2008 / 20:01

I think orange reception is rubbish I loose calls all the time and I can never get a signal inside where I work (Mobberley area Cheshire) sorry I went with them as I am stuck for 18months!! Live and Learn Smile

Veeshal says:

Monday 28 January, 2008 / 10:01

mobile phones and calls are an absolute  rip-off however providers know that theyre an absolute need now, hence charge more than they should. When ever your contract is about to end i recommend that you threten to leave the network! play them off each other! tell orange u can get a better contract with Tmobs and vice versa! im paying £30 a month. that gives me 2500 anytime, any network mins. UNLIMITED text msg's and for one month free wap! ive also manaaged to haggle 2 magic numbers and then, the latest sony erikson phone! so the trick is to haggle, play them off each other. they do not want to lose ur custom so will eventually cave in! a friend of mine recently called up and asked for the same tariff as me and refused to budge as they had given it to me! and surprise surprise he got the got the same deal! try it! *orange!

kev says:

Saturday 05 April, 2008 / 12:04

Chris, unless I'm mistaken, my months have more than one weekend, as do pretty much everyone elses I would guess.

I've been with all of the big 4 providers at one point or another and they're all pretty much the same. Only to happy to help when you're wanting a contract but any problems and it's a different story.
T-mobile were pretty much the best in complaints (probably because they deal with so many) as they always backed down.
Watch those extra charges for out of bundle costs... I got stung with £170 on my bill for a total of 12Mb of data when they were doing an unlimited package for £7 a month which they incorrectly told me I couldnt have!
A quick complaint and threaten to go to the ombudsmen and the billing was sorted out and backdated for 6 months.

3 are next for me. Just need to haggle them down on the handset prices for my business contract!

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