Check you can afford phone contract before signing

19 April 2012 17:49:23

Many Brits are struggling to pay their phone bills.

You may be desperate to get your hands on the latest smartphone, but it's vital to ensure you can afford the contract you're offered before signing on the dotted line. Many Brits are running into financial difficulties as a result of their soaring phone bills, according to advice charity the Money Advice Trust, which has witnessed an increase in calls from people with phone-related debts. It seems that while smartphones are the latest must-have accessory, they can quickly lead to a severe headache if you fail to work out your budget in advance.

Telephone debt calls up 150%
The Money Advice Trust says that calls relating to telephone debts have risen by a massive 150% since 2007 - a situation it believes is directly linked to the growth of smartphones. Just 3.9% of calls received by the charity in 2007 were from people with telephone debts. But last year, more than 14,500 people (7.4% of all calls) contacted the charity to ask for advice about their phone bills.

Mobile contracts 'now more expensive'
Joanna Elson, chief executive of the Money Advice Trust, explained that mobile phone contracts are now much more expensive than they were five years ago. Contract-free smartphones often cost in excess of £500, so providers have to recoup this cost when handing out 'free' phones to contract customers by increasing the monthly fees. "This in turn means more people struggling to meet phone contract payments and finding themselves with a debt problem," Ms Elson revealed.

What to do if you're struggling to pay
If you're struggling to pay your phone bills, contact an organisation such as National Debtline before things get too serious. This will give you access to free advice and will help you to work out if you're paying too much for your contract. You should also take a look at the rest of your outgoings and work out the best way to tackle your debts.

You may be reluctant to speak to someone about your financial problems, even though these organisations speak with tens - if not hundreds - of thousands of people in a similar situation to you every year. If that's the case, you can use an online service such as www.mymoneysteps.org which will enable you to seek help without having to voice your problems out loud.

‹ Back

All news articles

All Home Page News
All News Stories

Product Offers
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.

Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.