The Observer - - CASH - Shane Hickey

It makes sense to pay for a phone out­right rather than spread out the pay­ments over 24 months and pay in­ter­est on the pur­chase to a mo­bile phone op­er­a­tor. The prob­lem is that many peo­ple do not have the lump sum - which will stretch to al­most £1,000 for the new iPhone X - to buy it in one.

One so­lu­tion is to buy the phone on a 0% in­ter­est credit card and then get a sim-only deal for calls, texts and data. MBNA, Sains­bury’s Bank, Post Of­fice Money and San­tander all of­fer cards with 0% in­ter­est for 30 months.

How­ever, users should be aware that they must make at least the min­i­mum monthly re­pay­ments and en­sure that the debt is paid off in time or else the in­ter­est rate will jump.

Go sim-only and you’ll save money.

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