A new report has revealed 76 percent of UK mobile phone users are wasting almost £200 a month on a contract which provides them with more minutes and texts than they require.
The national Billmonitor mobile report shows £4.899 billion is wasted in this way in total each year in the UK.
A total of 28,417 mobile bills were analysed revealing 52 percent of customers waste money on a tariff that is too large for them, on average using just one quarter of their monthly calling allowance ñ amounting to a total waste of £2.62 billion.
A further 29 percent of customers were found to be wasting money on a tariff that is too small on out of allowance calls, texts and data usage, which could be reduced on a larger tariff.
While 19 percent of customers are wasting money by not optimising free benefits, or taking advantage of lower costs from 24 month contracts, even though they have the right level of inclusive minutes.
If you are on the wrong contract, find out how to reduce your mobile phone costs:
If you have noticed a good rate or offer and are considering taking that out, then before you do, make sure you compare what other providers offer. They may offer a similar rate or number of free minutes, but be able to offer a better free phone in addition too, so check that the offer you take out is the right one for you.
A good way to check you are not over paying or under paying on your allocated minutes and texts is to look at your mobile phone bill before you compare the market ñ do you go over your allocated allowance and could you do with more freedom ñ or do you always have hundreds of minutes left over? Also ask yourself if you are paying for extras on your phone that you never use ñ if so you could be wasting money.
Check your tariff
If you are coming to the end of your contract then you could ask your provider if they can match a deal you have found offered elsewhere on the market, or if they can provide a cheaper alternative to what you are currently paying.
Check your tariff to see what you are paying on any calls or texts which are not included in your allocated allowance. When comparing tariffs look at the internet costs too, and if you get charged for texting or calling at certain times of day.
Pay as you go
You may want to consider a pay as you go mobile phone ñ this may work out well if you are happy with your mobile phone and do not need to change it, but instead could make the most out of a good deal being offered.
A sim-only deal is also another one to consider, if you cannot find a contract to suit your needs and already have a good mobile phone.
If you enjoy downloading music or apps on your mobile phone, or want the freedom to do this, then check how much providers charge for this. Sometimes they include it in the overall monthly charge, so check that you require the other minutes and texts included in that, and you are not overpaying on this just to get a low, or free, download charge. You may find it may be worth paying a standard fee for downloading, and get a cheaper monthly contract which you use.