How to cut the cost of your mobile phone

Eight out of 10 people are on the wrong mobile-phone tariff, with just 30pc using their full minutes and texts, according to research by Billmonitor.com, the comparison website. As a result, they are paying as much as £200 more a year than necessary.

Finding the best plan can be a minefield due to the enormous number of tariffs, deals and one-off offers available, but help is available with an internet service that compares prices from providers.

BillMonitor.com compares more than 12 million British mobile phone deals and shows you the best contract for your mobile phone usage. The site will run through every call, text and byte of data on your bill, working out the cost on each tariff. By taking into account details such as free minutes, off-peak calling and charge limits, it can then show you the 12 tariffs that could save you the most money.

If you are not using your tariff, ask for a downgrade

If you discover that you are not using your full call and text allowance and have been with a network for more than three months, some providers will let you downgrade to a lower monthly tariff. Similarly, if you regularly exceed your bundle's allowance of free minutes and texts and incur extra charges, you may be able to renegotiate and cut costs.

If this sounds like you, it is worth phoning your provider's customer-services department for a tariff check-up every three months. They will then be able to review your bills and may be able to recommend something cheaper.

Sign up for cashback

If you are shopping for a new contract, why not make some money in the process?
Cashback websites often list mobile phone providers that pay commission when shoppers click on their links. 

In turn, the cashback website passes on the commission to the consumer. Some retailers pay a fixed sum, while others pay a percentage of your spend – but the earning potential from these sites can be substantial.

For instance, on the biggest website, Quidco, this week you can earn £250 from Vodafone when you sign up for an HTC Desire S on a 24-month contract or £150 on all other 18-24 month contracts, including iPhones.

Recycle old handsets for cash

There are 25 million unused handsets in the country, according to a study by Mobile Life. The research found that almost 40pc of people have an old mobile phone that is no longer in use, while 2.6 million people throw their unused handsets away. If you are one of these people, you could be missing out on extra cash, as trading in your old phone is easy and can prove to be quite lucrative.

Avoid paying premium rates

Stop paying above the odds when you call customer-service lines with the 0870 app for your smartphone.
Many companies will use 0870, 0800 or 0845 for customer service, which can cost as much as 50p per minute to call. Free to download, this app will turn these numbers into 01 or 02 numbers, which will come out of your contracted minutes.

01/08/11 - Telegraph.co.uk

Are you looking for a new phone/new contract? Check out our Reduce Comparison mobile site featuring all the latest handsets and fantastic deals.