As of 2019, it was estimated that 5 billion people across the world had a smartphone. Many of those users also have had to sign up for some kind of mobile contract. In fact, 47% of cell phone users in the U.S. received their smartphone by signing into a contract.
One of the biggest reasons people sign up for lengthy contracts is because they receive a new phone. But, once you have the phone, you might find yourself stuck paying a monthly amount that is hard to afford. Some contracts will have an introductory period and then the cost will go up. Others will charge you hidden fees that you may not have known about upfront.
Thankfully, those outdated contracts that serve to suck you in are a thing of the past – at least when you choose a SIM-only plan.
Risks of Mobile Contracts
One of the biggest problems with most mobile contracts is that they can be hard to understand. There is typically a ton of “fine print” and legalities that makes the contract itself somewhat confusing. You might be signing up for something that you don’t fully grasp, so if you ever have a problem with your plan, you may not be able to do anything about it because it’s in your contract.
Some of the “hidden dangers” within mobile contracts include things like hidden fees for data overages, trial periods, and limits on calls and texts. No mobile company should hide things like that. So, if their rules and regulations are hidden somewhere deep within the contract, it’s important to ask yourself if that’s the right option for you, or if a different solution would be better suited to fit your needs.
What Is a SIM-Only Plan?
SIM-only contracts are typically much cheaper than their traditional counterparts. Why? You only receive the SIM card itself instead of a new phone along with it. Now, of course, there are instances in which a new phone is necessary. If you’re using a phone that is extremely old or doesn’t work properly, you might be in the market for a new one.
But, if your phone is working just fine and you want to stick with it, a SIM-only plan is a great way to save money and eliminate long-term mobile contracts. With a SIM-only contract, you simply pay a fixed amount each month while receiving all of the benefits of a traditional contract, including:
You will also usually get a fixed amount of calls and texts each month. That information is easy to keep track of, so you don’t have to worry about going over and you can “budget” your call time and text messages accordingly.
What Are the Benefits of a SIM-Only Deal?
Aside from not being locked into a mobile contract, there are other benefits to consider when you’re thinking about switching to a SIM-only plan. Obviously, the biggest benefit is that it’s cheaper. If you’re on a budget and don’t want to pay for all of the bells and whistles typically included in a mobile contract, you can save a lot of money with a SIM-only plan.
Additionally, SIM-only plans are more flexible. Whereas traditional mobile contracts can lock you in for a year or longer, many SIM plans offer shorter terms. Some even offer a month-to-month plan where you can choose to renew every 30 days or not. Life happens, and it can be unpredictable at times. So, if you don’t always have the budget for a certain phone plan, this can be a great option that won’t break the bank.
A SIM-only deal is also a great way to upgrade your phone whenever you want. As stated above, most people sign up for new contracts because they want a new phone. That’s understandable, considering there are new models being released almost yearly with the latest and greatest in high-tech features. Most people tend to wait 18-24 months after a new phone is released to actually upgrade their device. But, that means every two years or so, people are looking for a different phone. Unfortunately, being stuck in a contract can cause you to have to pay fees if you want to upgrade, or it may increase the amount of your monthly bill.
With a SIM-only plan, you continue to pay your designated monthly amount, and you can upgrade your phone whenever you want without having to change anything. You simply change where that SIM card goes.
How to Save Money With a SIM-Only Plan
Switching to a SIM-only plan will typically automatically save you money because you’re only paying for what you use. Plus, there are no hidden fees to worry about. But, the best thing you can do is to shop around and compare different plans and networks. A SIM-only plan will only work for you if it checks all of the boxes for your smartphone-usage needs.
One of the best ways to save money with a SIM plan is to look for existing deals. Providers are always trying to market themselves and their plans, and those savings can get passed on to you if you know where to look.
Look for SIM deals from your current broadband provider. If you trust them, it can be an easy transition to work with them for your phone needs, too. Plus, many providers will offer special deals to customers who use more than one of their services.
Many people unfortunately believe that mobile contracts are the only way to go if they want phone service. But, that simply isn’t the case. If you want to save money and avoid hidden risks, you can cut ties from mobile contracts for good, and step into the future with SIM-only plans. When you realize how much money you can save and find enjoyment in the freedom of a contract-free plan, you’ll never go back!