Loyalty pays with family, friends and café Nero (ironically), but when it comes to broadband and mobile phone contracts, you’ll be financially worse off for staying with the company year after year.
It is recommended to compare broadband and mobile tariffs every year to make sure you are getting the best deal. Below we uncover how much it costs to stay loyal and what you can do about it and how you can get the best mobile phone and home broadband deals:
Broadband – prices increase to £152/year when you are loyal.
A leading survey by Which!, showed 71% of the respondent stayed with their ISP (Internet Service Provider) for over three years. Most providers offer the best discounts for 12-18-month contracts on Broadband, meaning after that period the prices shoot up.
Why don’t people change? The main reason is time, people think it will take the whole weekend to find a new deal, when in fact it can take 10 minutes to go on a comparison table.
If you are out of contract you are very likely being charged more. Take a look at our best deals here and make sure you are getting those savings. Check out our Broadband comparison page here for the latest deals in the market.
Looking to change
Mobile phone – prices increase to £264/year when you are loyal.
A recent study by the Citizens Advice, showed staying with the same mobile provider for more than a year and you’ll pay £264 a year on average.
The cost is large due to the price of the smart phone handsets, some I-Phones for example can be more than £900, so the monthly payments are high until you have paid the contract in full.
Why don’t people change? People often forget that they have paid off their mobile handset (the companies will rarely remind you) and they keep paying the same rate, rather than opting for a Sim Only contract (far cheaper).
A SIM-only plan only covers your mobile service (not the handset). A large portion of people buy their phone outright, then sign up to a SIM-only mobile tariff. It’s worth doing if you have the money upfront to buy a phone or as above, you’ve paid off your handset contract.
A pay month handset/mobile contract, you are at a fixed fee every month. Normally you pay very little upfront (unless it is at the latest handset on the market), but your mobile bill will include the handset payment and the mobile tariff. You will also be locked into a 18-24-month contract.
To read a great article on “7 Saving Tips for your Next Mobile Phone” go here
Visit my Mobile and Sim Deal page here and Broadband comparison page here for the latest deals in the market and to get the best mobile phone and home broadband deals on the market.
Want to cut down on your Broadband costs, click here
Compare the latest deals on the market here.
Any tips or tricks you wish to share, please add.