A new phone contract can seem inexpensive when described as a monthly payment.

But £40 per month is £480 each year.

Before taking out a new contract, consider whether you really need a new handset.

If your existing phone works well, a SIM-only contract can sometimes be considerably cheaper.

Also check your data allowance.

Paying for far more data than you use is unnecessary, but repeatedly exceeding a small allowance can also become expensive.