Why Is My Mobile Bill So Expensive?

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Does your mobile bill depress you? Do you wonder how it is possible to use your mobile next to nothing and still receive bills that make your head spin?

Aside from mistakes in the billing system that happen every now and then, there are more fundamental reasons why your mobile bill is so expensive. Here they are, together with what you can do to lower your mobile bill, save some money and spent it on cool gadgets instead.

Wrong Type of Plan

The wrong type of plan is a very common reason for huge bills. Basically, there are three types of plans – pay monthly, PAYG (Pay As You Go), and SIM Only.

Pay monthly is usually the most expensive option because it is a long term contract where you get a subsidized handset in exchange for fewer minutes/texts than SIM only. In some countries this is the only option, so you are out of luck.

If you are on a monthly contract and you don't plan to change your mobile phone soon, check when your contract expires and consider switching to either PAYG, or even better – to SIM only. With PAYG the per minute cost is higher but you pay only for the minutes you have actually used.

SIM only means that you get a SIM card only rather than a mobile phone and a SIM card, as is the case with monthly contracts. SIM only contracts are especially popular in the United Kingdom and Europe as a whole, and if you live in the UK, or plan to move there soon, you might want to check what SIM only deals are available. Unfortunately, if you aren't in the UK, you won't be able to take advantage of these.

The main benefit of SIM only is that you don't pay the hidden cost for getting a handset. You pay only for the minutes/texts you use. Because of this, for the same amount of minutes/texts, SIM only is much cheaper than a monthly contract and PAYG. Therefore, if you switch to SIM only, chances are you will see the most tangible decrease of your mobile bill without having to drastically cut the amount of minutes you use a month.

Wrong Tariff Plan

In addition to the wrong type of plan, the wrong tariff (even if the type of plan is OK) is another common reason why you are paying so much for your mobile calls. If your plan includes much more minutes/texts than you need, you are actually paying for something you are not using. In this case the best you can do is search for a plan that offers an amount closer to your needs. You can have a look at what SIM only plans are available and pick the one that suits you most.

Your Provider Is an Expensive One

Your mobile bill may be expensive because of a very prosaic reason – you have chosen an expensive provider. Competition is driving prices down but still there are providers, whose plans are cheaper and providers, whose plans are more expensive. Unless you have special reasons, such as coverage or contractual obligations, to stick with your expensive provider, you'd better browse what the other providers offer and go for a cheaper one. This move alone can save you a lot.

Monthly Limit Exceeded

When you choose a plan with more minutes/texts you usually use, you end up paying for something you don't use. However, it isn't necessarily better to choose a small plan and regularly exceed it. Depending on your contract, when you exceed your monthly limit, either your service is cut off, or it isn't but you are charged for the extra minutes and this is where the huge bill might come from. In this situation, the best you can do is avoid talking that much, or if you permanently need more minutes/texts consider switching to a more generous plan.

Roaming and International Calls

Nothing makes a bill huge more than international calls and roaming. We do live in a global world and if you have friends, relatives, or simply business partners all over the world, and/or you travel frequently abroad, it is no wonder you are paying really a lot.

To cut your bill, you could consider alternatives, such as Skype. As for roaming, if you spend many days in the same foreign country, it is almost always much cheaper to get a local prepaid card and to use it even for calls to your home country than to use your service in roaming. However, don't take this for granted but check how much you pay for roaming and how much you would pay with a local prepaid card in the foreign country and do the math.

If you follow these simple tips, it is possible to cut your mobile bill in half or even more. By reducing your mobile bill in half you will hardly save millions but why pay lots of money when you have cheaper alternatives and better ways to spend your money?

For more advice and information on SIM only deals, visit http://www.simonlycontracts.co.uk

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