BUYING THE HANDSET
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.