Underestimating costs Brits almost 1.6 Billion per year

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Brits spend over £132 million unnecessarily every month on their mobile phone bill with 37% of Brits exceeding their mobile phone monthly call and text allowance.

Over half (61%) of mobile phone users who admit to exceeding their mobile phone monthly allowance for calls and texts overspend to the tune of at least £120 per year simply because they have chosen the wrong tariff.

According to research conducted by independent online mobile phone tariff comparison service OneCompare.com, 37% of mobile phone users overspend on their mobile phone by underestimating the amount of calls and texts they make. When signing up to a contract, most first time mobile users simply want a highly desirable handset and fail to pay enough attention to the tariff, in most cases, providers tempt consumers with good introductory rate which followed by an ongoing, less than average talk plan.

Anthony Ball, director of independent comparison and switching service OneCompare.com comment: “We hear that consumers are beginning to tighten their belts yet many are willingly throwing their money down the drain. Strangely, it has become a given that our mobile phone bill will exceed our monthly price plan, it’s simply a matter of how much. Our research clearly shows that confusion and lack of understanding still reigns true in this highly competitive market with £132 million being thrown away every month, without a thought, due to underestimating and lack of understanding of mobile phone tariffs. “

Ball continues: “Consumers should look at their bill regularly to help them understand what type of tariff will suit them best when it comes to reviewing their contract. Most mobile phone providers will allow you to upgrade your tariff even if you are in the middle of a contract although consumers will need to take note of any potential small print hazards such as cost or extended contract clauses. Once your mobile phone contract is up for renewal, it is important not to accept the first offer from the existing provider on the basis of a free handset or introductory gimmick, and shop around for the correct tariff for your specific needs.”

“Consumers should also be careful when offered a so called ‘free double minutes and texts for’ deals for a certain amount of months at the beginning of their contract because once the offer ends and it returns to its standard tariff, consumers may have got accustomed to using calls and texts they didn’t originally need at a high price.”

Lack of understanding is cited by 48% as the key reason holding consumers back from switching, a situation perpetuated by mobile phone providers who offer a multitude of tariff options making it impossible to compare various deals.