How Much Are You Paying For Your 'Free' Contract Phone

In today's contract-heavy culture, we've become accustomed to buying phones on contract. The low upfront cost can be attractive and, because this has become standard practice, we often don't question it and continue to buy phones on contract. Through initially "free" phones as well as "upgrades" which sound nice at first, phone contracts, when taken at face value, can seem like a great deal. The problem; however, is that we often-times don't factor in the hidden costs of these phones and, when we do, we realize they aren't free at all.

The True Cost Of Free Phones

So, what's the deal with free phones anyways? Surely, companies aren't just giving away expensive pieces of equipment out of the goodness of their heart? The thing about these free phones is that, in the end, whoever gives away these phones will have more than made their money back. This is fine, of course, that's just business. However, it does well for consumers to know about these things.

For example, when factoring in the cost of data, calling, texting, etc. from a pay-as-you-go, month-to-month or SIM only contract, the average user with a free-handset-contract will have paid double their phone's value over the course of two years through extra costs alone, let alone cellular costs. So, not only are free phones not free, they're actually even more expensive than just buying a phone upfront.

While they may cost less at first, buying a phone and choosing to go with a Three SIM only contract will pay for itself over the course of a year, and only save more money as time goes on, which is why so many people are finding themselves switching over to SIM only contracts.

An Alternative To Contracts And Pay-As-You-Go Plans

SIM only contracts are the answer to contract phones. While contracts keep you locked in for up to two years while draining your money, and pay-as-you-go plans can be a real hassle through constantly buying phone cards and tracking your cellular usage, SIM only contracts meet halfway between the two, bringing users the best of both worlds.

Using Three as an example, half a gigabyte of data, 100 calling minutes and 3000 texts can be had for £10, whereas getting a free iPhone 6s on contract through Virgin Media costs 4 times the amount on a month to month basis for roughly the same features, save for more texts and calling minutes with half the data. Nothing against Virgin Media in particular, this just goes to show the true cost of free phones.

SIM only contracts cost less on a monthly basis, don't require a long-term commitment and allow users to acquire the phone of their choice, whether it be the latest iPhone or an old Galaxy S2, giving users more freedom than ever.

Don't let the upfront phone costs scare you and don't let the hidden costs of phone contracts creep up on you. SIM only contracts just make more sense in the long run and should be considered by anyone looking for either a new phone or a new plan.