When looking for a new mobile phone it can be tricky to figure out which deal will be best for you. There are now more choices than ever with short term contracts, sim-only deals, 12 month contract, 18 months and 24 months, all with their own advantages and disadvantages. So how do you decide what deal is best?

If you’re looking for a cheap mobile phone deal then there are a number of things to consider. Firstly, how much calls, texts and data do you need? Knowing this you can narrow down your search by looking for the deal that suit your usage needs. Next think about is the phone. If your happy with a relatively basic phone that makes calls and not much else then great! You’ll be able to find a cheap phone that does exactly what you need without having to pay for it in instalments. However, if you want to get the latest “all singing, all dancing” smart phone then unless you can buy it outright your may have to look at including it in your monthly payments.

Once you’ve decided these factors its then time to look at the advantages/disadvantages of short/long term contracts.

So let’s start with short term contracts.

Advantages

The main advantage of a short-term contract is that you have more freedom to change your mind as and when you like. Short-term contracts generally last for 30 days, and roll on each month. They are independent from your phone so even if your phone changes you can continue with the same contract.

Disadvantages

You must provide a phone so you will have to buy it separately. Not a problem if your getting a cheap phone for calls and texts only. However, if you’re after a top of the range smart phone you could be looking at spending between £300-£800 in one go to get the phone you want. The other disadvantage is that the networks tend to be less generous with their usage allowances and because of the flexibility that means you may not get the best value for money.

Long Term Advantages

Being tied to a network for a 12-24 month contract that means that the provider is getting regular payments from you for that period. Therefore, they can offer better value for money and you can also get an expensive phone, subsidised by spreading the cost over the duration of your contract.

Disadvantages

One of the main disadvantages is that you have very little flexibility as you are essentially borrowing the phone from the provider until the end of the contract. They will lock the phone to their network, which may lead to additional charges if you want to change to another network at the end of your contract. Also, because you are paying for both the phone and your usage, the monthly bills will be higher.