7 Reasons to Ditch Contracts in Favour of SIM Only

If you want to cut your expenses and have decided to start with your smartphone, moving away from expensive two-year contracts is the first step. If you are currently coming to the end of a contract or are no longer in a contract, you’re in a great position to start saving a significant amount of money on your phone. With smartphones becoming more and more expensive and upwards of £50 per month now an average price to pay for a traditional contract, the savings that you can make from switching to SIM-only can be huge. Unlike traditional contracts where you cover the cost of the handset at the time of purchase, your SIM only deal will be much more flexible, and only covers the cost of the minutes, texts, and data that you decide to purchase. Here are some of the main benefits of switching from a traditional contract to SIM-only.

Save Money

If you’re cutting your monthly expenses, your smartphone could be a huge expense that doesn’t need to be so much. Compared to a traditional smartphone contract, a SIM only deal could feel like pennies. Since you are not covering the cost of an expensive handset, prices can be seriously cheap, such as these SIM only plans from £5 per month offered by Lebara. Lebara offers a range of cheap SIM only deals with the option for you to change which one you want at any time, providing a flexible option where you are only ever going to be paying for what you need. You’re never tied into a minimum term and there are no credit checks, making it an ideal choice for anybody who is looking to save money on their smartphone.


7 Reasons to Ditch Contracts in Favour of SIM Only


No Credit Worries

If you’ve not got the best credit rating or are trying to keep as much as possible off your credit score, a SIM only deal could be the best option for you. Rolling SIM-only deals that you can cancel at any time do not require you to be tied into a contract or make a minimum number of payments. And since you are not technically borrowing your smartphone on a hire purchase agreement as would often be the case with a smartphone contract, there’s usually no need to conduct a credit check. Whether you’re not sure if you’ll get accepted or simply want to avoid making any more applications for credit, a SIM only deal could be perfect for you if you want to keep your smartphone off your credit file. In addition, missing payments will never pose a problem – unlike traditional contracts, this won’t be reported to the credit bureaus, and you can simply buy a monthly bundle whenever is best for you.

Freedom of Choice

Another great benefit of getting a SIM only deal is that if you change your current handset, you do not need to continue paying for it. Traditional contracts mean that your monthly payments are there to cover the cost of your smartphone. As a result, if you sell your phone, give it away, or even break it, you’ll still be required to make payments or your account could end up going to debt collection and your credit score will be impacted. On the other hand, a SIM only deal means that there’s no need to worry about this happening. Your SIM card and the amount you pay each month for your minutes, texts and data is completely separate from your smartphone handset, giving you the freedom to change it to a different model or replace it if it’s broken, without the need to continue making monthly payments for your old phone while covering the cost of a new one.

Spend What You Need

A main drawback of traditional contracts that won’t be a problem with a SIM only deal is that you’re committed to spending a certain amount of money each month. Let’s say that you get a contract for £50 per month that includes unlimited minutes and texts and a huge amount of data, but then find yourself working from home without a need for all that data. Cheaper contracts are available with less data that would work for you, but you’re tied into this one, so you need to continue paying £50 monthly until the contract is up.

This can be one of the most frustrating things about smartphone contracts, but the good news is that SIM only deals don’t have this problem. Since you are not tied in to paying any set amount, you could pay a different price each month if you wanted to. This allows you to review your usage and change it as you see fit each month. If you’re currently working at home and would be fine with 2GB instead of 20GB of data, you can change it over in a few simple clicks.



Less Stress

Signing up for a two-year smartphone contract can be risky and even stressful, since you don’t know what your financial situation is going to be like over that period of time. Even if you’re able to easily manage the monthly cost when you first sign up, you could be in serious trouble if you suddenly get made redundant after a few months or the company that you work for closes down, for example. Since you never know what’s going to happen in your life, a smartphone contract can sometimes be an unnecessary source of stress for you. On the other hand, a SIM only deal can be upgraded, downgraded, cancelled, or you can easily adjust your payment dates based on what suits you, leading to much less financial stress and worry.

Excellent Business Choice

If you’re starting your own business and want a second handset that you can use purely for business use, a SIM only deal is an ideal way to save money when running your company. Since they offer so much flexibility, they can be the perfect option for those who need a business phone that can be adjusted to meet the needs of the business over time, particularly in the early stages where sales and profits can be unpredictable and many business owners want to keep set expenses down as low as possible.


Save Money on Your Handset

Last but not least, a SIM only deal isn’t just great for saving money on the amount that you’ll pay for using your smartphone on a monthly basis. They also make it easier for you to purchase handsets at a cheaper price by opting for certified refurbished or second-hand models, which are not typically available as part of a standard contract. Along with saving money, this can also encourage you to make more environmentally-friendly choices when it comes to your consumer habits in terms of buying a new smartphone. Second-hand and refurbished phones are much better for the environment since they reduce the demand for brand-new handset production and encourage users to get more use from the handsets that they choose.

Your smartphone is one area where you can easily reduce your monthly expenses by a lot. While smartphone contracts might be the traditional choice, they can come with their own set of problems. SIM-only deals allow you to save money and offer you more freedom with your phone.



7 Reasons to Ditch Contracts in Favour of SIM Only is a feature post 


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.