Mobile phones are ubiquitous nowadays. Nearly everyone has a mobile device to use not only for the traditional tasks of calling and texting, but also for playing games, listening to music, surfing the internet and a lot more. Having a smart phone can certainly make your life easier. However, the costs of mobiles and mobile services are pretty high. In today’s financial climate, many of us are tightening our belts and trying to save money, and there’s no reason that mobile services shouldn’t be part of our economy drive. Today we’re looking at SIM only mobile deals, how they might be able to save you money if done right, and why you might want to consider getting one.
What Are SIM Card Deals?
SIM card deals are contracts with mobile operators that provide you with a SIM card and a calling plan. SIM card deals tend to have cheaper monthly costs than other kinds of contracts from operators. You will need to have a mobile phone or be willing to pay for one when signing up for a deal. But the process itself is pretty easy, and cheap, as long as you make the right choices.
The Problem with Incentive Contracts…
The most common kinds of contracts signed by people with mobile operators are called incentive contracts. Unlike SIM card plans, these incentive contracts give you a SIM card, a calling plan and a cheap or free mobile phone. Incentive deals have higher monthly costs than SIM card plans do, which is how the operator covers the cost of the phone that they give you. However, if you look carefully at the numbers, you’ll find that the extra costs on these incentive plans add up over the course of your contract to far more than the cost of the phone that you are given. Operators say that this is the price you pay for the convenience of buying a phone in instalments with little or no money down. Indeed, if you need a mobile and don’t have the cash to pay for one right now, then an incentive deal might be the only way that you can get what you need. But as a long term saving strategy, an incentive deal is not a good plan.
Cheap Phones…
Of course, the problem with a SIM only deal is that you need a phone in order to use one. But there are plenty of options for cheap phones nowadays. One of the best options available to you is to go with a refurbished phone. A refurbished phone is a model that has been bought and then returned, usually because the customer has changed his or her mind about the device. But a company can’t just resell the phone immediately, since they would have to offer a steep discount on what is, after all, a used model. So instead, phones are sent back to the factory that they came from and refurbished. This refurbishment process means that the phones are cleaned, rebooted and inspected from top to bottom before being certified for resale. The operator or manufacturer still has to sell this phone at a discount, but they make more money than they would if they sold the phone as used. For the customer, there are a lot of advantages to getting a refurbished phone. Because it’s been inspected and certified, there should be no difference in look and functionality between a brand new phone and a refurbished one. Refurbished phones can be sold without their original packaging, and may come with a generic charger or reprinted manual. But they also come with a ninety day warranty, so if something goes wrong, you can send them back. A refurbished phone is a great way to save money. There are other cheap phone options, you can go with a second hand or used phone, for example. But you can definitely get phones cheaper than you would if you bought them through a mobile provider.
Calling Plans…
The most important thing that you can do when trying to save money by going with a SIM card only deal is to choose the right calling plan. The contract itself will come with a calling plan, which will include a limited number of calling minutes that you can use per month, as well as a monthly data allowance and a set number of text messages that you can send. You pay a monthly fee for these services, and will pay the same fee whether you use all your limit or none of it. If you go over your limit, you’ll pay expensive extra charges for using extra services. This means that you must choose the plan that’s the right size for you. A plan that’s too big will mean that you’re paying for services that you’re not using, whilst a plan that’s too small will mean that you’re paying expensive extra fees for extra services. The best way to find out what kind of plan you need is to look at some of your old mobile phone bills. These should give you an idea of what your average phone use looks like, and you can then use this information to choose the right calling plan for you.
The Right Contract Length…
You’ll also be offered options on the length of contract you want to go for. Nearly all operators offer both twenty four month and twelve month contracts, with some operators also offering eighteen month contracts. In general, the longer the contract you go for, the cheaper your monthly rates will be. But keep in mind that it is difficult and expensive to leave a contract early. To terminate a contract before it’s finished means that you will have to pay a penalty based on how many months are remaining in the contract. So even though a longer contract will give you better rates, you still need to be careful that you’re not signing something of an unrealistic length for you.
