Find the best value for moneyBills or contracts

Understanding the best value for money is important when looking at option or contract services, eg mobile phone deals.

Part ofMathsMoney

Bills or contracts

Phone

Most people have a mobile phone or a landline. How much you pay for your phone can be worked out in different ways, so it isn't always straightforward to work out what is the best value.

Three different types of phones - A) Landline, B) Mobile - contract, and C) Mobile - pay as you go

Landline phone bill

A landline phone bill usually has two main elements:

  • the cost of the units used (eg call minutes)
  • line rental

There are further optional features available, eg caller recognition, call barring, voice mail. These usually cost extra.

Mobile phone - contract

Purchasing a mobile phone on contract means that you agree to pay a monthly bill for a set amount of time, eg a year.

Signing up to a contract will give you a set amount of calling minutes, text messages and data per month. There are usually charges for exceeding your allocated minutes, text messages and data. These are often charged at a much higher rate.

Mobile phone - 'pay as you go'

With this type of plan you pay for only the units that you use. The unit costs are usually higher than a contract mobile but there aren't any fixed monthly fees.