My new SIM-only mobile deal is (sort of) free – make sure you don’t fall into the contract trap, says LEE BOYCE

Every year, millions of people are out of contract on their telecoms contracts – broadband, mobile and television are the usual ones.

We normally contract for 24 months* and pay a monthly fee that increases each April due to inflation-related increases.

These increases look set to be even more dramatic from next year, thanks to new rules that mean telecoms companies will have to show that their bills will rise using pounds, rather than percentages.

In terms of mobile contracts, the cost consists of two parts: the handset and data/minutes/texts. The goalposts have changed somewhat in recent years, with most offering unlimited minutes and texts, and then varying levels of data.

Data tends to be the more crucial element, as texts have faded away and been replaced by messaging apps, which require Wi-Fi or data and can also make calls this way.

You can often get away with a relatively small amount of data if you connect to WiFi at home, at the office or on the road, but if you don’t and go over your data limit, the extra costs can skyrocket.

But what often happens is that the contract comes to an end, we leave it too late to look around or we are tempted into an ‘upgrade’.

AKA, a phone you probably don’t really need, put your perfectly good phone in a drawer, and never see the light of day again.

Meanwhile, some do nothing at all and continue to pay the monthly fee, much of which consists of the device you now own, since you’ve paid it off.

It’s an epic waste of money, one of which is estimated to cost hundreds of millions of pounds a year.

What I usually do is reach the end of the contract, shop around for the best SIM-only deal and try to keep the same phone for another three years.

In my opinion, a telephone should last five years.

It works for me – and let’s face it, how much more impressive can smartphones get? We can already take beautiful photos, listen to millions of songs and watch TV in high quality at our fingertips. I can’t see how much better a phone can really get.

So recently, towards the end of a £35 a month contract with Three Mobile, I went looking around. In the end I made a Sim-only deal with Three itself.

Not the cheapest offer I found, but for convenience and not to go to a mobile provider I don’t know, I went for it.

For £11.20 per month with loyalty discount on an annual contract I get 12GB of data. More than enough for me.

But a crucial reason I stayed is the Three+ membership. Firstly, it offers a weekly Cineworld movie ticket for £3 to use on weekends, making it a super cheap activity with my six year old if we choose to go occasionally, especially in the wet and wild, dark days of winter.

However, the second benefit is even more valuable to me: a £1 cup of coffee from Café Nero every week. That saves me £2.60 a week on a cup of coffee that I would buy anyway, from the chain that I think serves the best cuppa joe, a few minutes from the office.

That’s a saving of €11.40 per month, which is almost the same as my monthly contract. I look at it as if I now have virtually a free mobile contract.

It’s also a serious saving on my previous monthly contract, and I’m now spending that £35 a month on something useful: a regular savings account with 6.5 percent interest with Nationwide.

This time next year I’ll be spending it on the cost of Christmas, and it’s good to feel the benefit of a few minutes of work finding a Sim-only deal.

It is crucial that you stay up to date on all your contracts and accounts. Telecom companies depend on a segment of people who are too lazy or forgetful, causing them to pay much more than necessary for months… or even years.

Don’t let that be you. And don’t let it be your loved ones either. It may be worth helping more vulnerable members of your family or friends to audit all these different costs that it can be easy to lose track of.

*I’ve noticed this year that a lot of providers are trying to lure us into 36 and 48 month deals by making them look cheaper, but they’re not. They appear cheaper because the total amount is spread over a longer period of time. Do your research before you take the plunge.

PS: Broadband and TV companies aren’t immune to joining the Black Friday sales frenzy and while you need to be careful what you sign up for, there are some really good deals available. Try our broadband and TV comparison tool to check.