Martin Lewis’ MSE warns millions of people are ‘massively overpaying’ on bills – easy check to avoid it
MARTIN Lewis’ MoneySavingExpert.com (MSE) has warned that millions are overpaying on their bills.
Nine million out-of-contract mobile phone users will have seen their bills rise by up to 17.3% this month but there’s an easy way to avoid it, according to MSE.
Most telecom providers increase their prices annually based on the rate of inflation plus an extra 3.9%.
While the hike is inevitable, there are ways to cut down on your bills.
In the latest weekly newsletter, the MSE Team said: “We’ve warned that mobile bills were facing double-digit percentage hikes this month – and if you’re in contract, there’s little you can do to avoid ’em.
“But if you’re one of the NINE MILLION out of contract, check if you’re massively overpaying.
“You may even be forking out for the old ‘pay off your handset’ contract rates, despite having already paid for the phone.”
The advice comes after Sky Mobile raised prices by 9% on February 14 and BT, EE and Plusnet raised the prices of their mobile phone contracts by 14.4% on March 31.
O2 and Virgin Mobile raised their contract prices by up to 17.3% on April 1.
Vodafone also raised prices on April 1, with the average customer seeing their bill rise by 14.4%.
Three will also raise the price of its contracts by 13.4% from May 1.
Here’s exactly what you need to do to cut costs amid the price hikes.
How can I cut my mobile bill?
If you think your bills are too high and want to drive them down, the first thing to do is find out what the cheapest deal on the market is.
You can use this rate as a bargaining tool to get a better offer from your provider or as inspiration to switch providers.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, speed and provider.
Haggle a cheaper deal
If you’ve found a cheaper rate with another provider get in contact with your provider to see if they can match the price.
If you’re unsuccessful at haggling, then you could threaten to leave.
Your provider might then feel more inclined to keep you by offering you a better deal.
Attempting to haggle will always make it easier to decide whether to renew your contract or move to another provider.
Switch provider
If you’re not happy with the new charge and any attempt to haggle didn’t go your way – switching providers can be the best way to save money on your telecom bills.
But if you do want to switch, make sure you know if you’re in or out of contract.
If you’re mid-contract though and wish to leave, bear in mind that you could face an exit fee so check with your provider for any charges.
Mobile phone users are stuck between “exorbitant” mid-contract price rises or high exit fees, according to Which?.
It found that an EE customer would face exit fees of £424.67 to leave a year early and Three’s customer would need to pay £379.46 to leave their contract.
Additionally, using the example of an EE customer who took out a 36-month contract for an iPhone Pro Max with unlimited data, Which? estimated the customer would pay an additional £105 for the handset over the next year due to the price increases.
Three customers face the lowest exit fees of £169.59 for leaving their contract a year early.
It’s always worth asking your provider if they’ll offer you something cheaper anyway so do give them a call even if you’re in contract.
If not, make a note of the date your contract ends and tally up other deals that you could switch to.
Check if you can get a social tariff
If your household is on a low income it’s also worth investigating social tariffs.
These broadband packages and discounts have been created for people who are receiving certain benefits.
They’re often available to those on income support, Universal Credit, or disability allowance.
Around 4.2million households are eligible for these cheaper tariffs but only 55,000 are making use of them.
Voxi and SMARTY both offer these cheaper mobile phone contracts and prices start at £10 a month.