Advice
Sim-only mobile contracts
Sim-only mobile contracts are often more flexible than contracts that come with a phone
You get a new mobile phone Sim card but no new mobile handset. A mobile Sim card is a chip that you insert into the back of your mobile phone that lets you make calls and send texts.
Sim-only mobile contracts, such as O2's Simplicity, usually only tie you in for a month at a time. Orange, T-Mobile, Virgin Mobile and Vodafone, also offer Sim-only mobile contracts.
Sim-only contract pros
If you're happy with your mobile handset, Sim-only mobile contracts are often more flexible than lengthy mobile contracts that come with a free or cheap mobile phone. Most Sim-only mobile tariffs tie you in for only 30 days at a time.
Because you're not getting a subsidised mobile phone handset, you'll get more mobile minutes/texts for your money than a mobile contract that does include a handset. You can save up to £15 a month compared with equivalent traditional pay-monthly mobile tariffs.
Even if you want a new mobile handset, you might still be better off with Sim-only. When we compared a range of Sim-only mobile tariffs with equivalent pay monthly mobile tariffs that included a free handset, we found that the monthly savings you would make from choosing the Sim-only tariff over an 18-month period would often pay for the cost of a decent mobile handset outright.
Sim-only contract cons
You don't get a free or subsidised new mobile phone (unlike with a traditional mobile contract), just a mobile Sim card which you insert into an existing mobile handset.
Your existing mobile service provider may not be happy with you switching from a traditional to Sim-only contract.
You might have to unlock an existing mobile phone with a new mobile service provider.
If you want a top-of-the-range mobile handset, you might be better off with a traditional contract, as very high-spec mobile models can be expensive to buy standalone.