The out of contract trap: still paying for a phone you already own
Here’s a quiet little cost most of us never notice. You sign up for a shiny new phone on a two year contract, you pay it off month by month, and then nothing changes. The phone is yours. The bill is not. It keeps landing at the same price every month, for a handset you finished buying long ago. That’s the out of contract trap, and moving to one of the cheapest SIM only deals is usually the quickest way out of it.
Nobody from your network is going to ring up and offer to knock the price down. Doing nothing is the default they’re banking on, and for a lot of us it quietly costs more than it should. The fix is quick, though. About a minute, and you keep your number.
Key takeaways
- On most two year phone deals, the price doesn’t drop when the contract ends. You keep paying the same amount for a phone you already own.
- SIM only deals split the airtime from the handset, so you only pay for calls, texts and data.
- Rolling monthly SIM only deals start from around £6 a month (checked July 2026), with no long commitment.
- You can switch and keep your number, usually within a day.
What is a SIM only deal?
A SIM only deal is exactly what it sounds like: you get a SIM card with an allowance of calls, texts and data, and no phone attached. Because you’re not paying off a handset, the monthly price is far lower than a typical phone contract. You pop the SIM into a phone you already own, and that’s it.
They come in two flavours. Rolling monthly deals run 30 days at a time, so you can leave whenever you like. Longer deals lock the price in for a year or so, which can work out a little cheaper. Several networks, including SMARTY, giffgaff and Lebara, run rolling deals with no credit check (checked July 2026), so they’re easy to try.
How much can a SIM only deal save you?
It depends on your usage, but the gap is usually large. A flagship phone contract can run anywhere from around £40 to £60 a month. A SIM only deal with a healthy chunk of data often sits nearer £10 to £15. On that kind of example, you’d be looking at roughly £25 to £45 a month staying in your pocket, or something in the region of a few hundred pounds a year, depending on the deal you pick.
Here are a few example advertised prices to show the ballpark. Deals move around a lot, so treat these as a snapshot rather than a promise, and always compare live prices for what’s available today.
| Provider | Example plan | Price per month |
|---|---|---|
| SMARTY | 5GB data, unlimited minutes and texts, rolling monthly | around £6 |
| giffgaff | Light plan for mainly calls, texts and a little data | from around £6 |
| Lebara | 25GB data, unlimited UK minutes and texts, one year deal | around £9 |
Example advertised prices, checked July 2026. Your price will depend on the network, the data you need and the deal live at the time.
Switching utilities for a living tends to make you cynical, so we’ll be straight with you: the exact figure is yours to bank, not ours to promise. But the principle holds. If you’re paying full phone money for a phone you own outright, a SIM only deal almost always costs less. Switcheroo is rated 4.45/5 on Reviews.io, and this is the kind of five minute win people thank us for.
How do I know if I am out of contract?
You’re out of contract once your minimum term, usually 24 months, has ended. The quickest way to check is to text your network, log into your account, or look at a recent bill for your contract end date. If it’s passed, you’re free to switch with nothing to pay to leave.
There’s one thing worth understanding first. Older style contracts bundle the phone and the airtime into a single price, and that price often stays exactly the same after the term ends, which is where the overpaying creeps in. Newer split contracts, sometimes called airtime plus device plans, keep the two separate, so the handset part should fall away once it’s paid off. If you’re on a split plan and the device cost hasn’t dropped, that’s worth a phone call. And if you took a phone on a separate finance agreement, leaving your airtime plan won’t cancel that loan, so check both.
What to check before you pick a SIM only deal
Not every SIM only deal suits every person, so a couple of minutes of thought saves you a headache later. Run down this quick list before you commit.
- Coverage. Check the network’s signal where you live, work and travel. A cheap deal is no bargain if the signal drops out on your own street.
- Data. Match the allowance to what you actually use, with a little headroom. There’s no prize for paying for gigabytes you never touch.
- Contract length. Rolling monthly deals keep you free to move. A one year deal can shave a little off the price if you’re happy to stay put.
- Price rises. Several networks currently advertise no in contract price rises (checked July 2026), so it’s worth a look if you’d rather your bill sat still.
How to switch to a SIM only deal and keep your number
This is the easy bit, and it’s meant to be. Once you’re out of contract, you don’t need anyone’s permission to leave.
- Work out roughly how much data you actually use. Your account or phone settings will show your recent months.
- Compare SIM only deals for that amount of data, and check the network covers your area well.
- Ask your current provider for a PAC code (text PAC to 65075). It’s free and they have to give it to you.
- Give the code to your new network and your number moves across, usually within one working day.
If you’re still weighing up whether to go SIM only at all, our guide on SIM only versus phone contracts breaks down the trade offs. The same trick works for your home broadband too, as we cover in out of contract broadband. And if your phone is on its last legs, a refurbished phone paired with a cheap SIM can work out far cheaper than a new contract.
One last thing worth knowing. Under Ofcom rules that came in during January 2025, providers now have to spell out any mid contract price rises in pounds and pence before you sign, rather than hiding them behind a vague percentage. Handy while you’re locked into a deal. It does nothing for the out of contract problem, though. Once your term ends, stopping the overpaying is on you, which is exactly why a quick switch is worth the minute it takes. The rules are set out on the Ofcom site.
Frequently asked questions about SIM only deals
- Will I lose my phone number if I move to a SIM only deal?
- No. Ask your current network for a free PAC code, give it to your new provider, and your number transfers across, usually within one working day.
- Do SIM only deals work in my current phone?
- Yes, as long as your phone isn’t locked to another network. Most phones bought in the last few years are already unlocked, and a phone you’ve paid off usually is too.
- Are rolling monthly SIM only deals better than a one year deal?
- Rolling deals let you leave any month, while a longer deal can lock in a slightly lower price. If you like to keep your options open, rolling is the safer pick.
- How much data do I actually need?
- Most people use less than they think. Check your recent usage in your account, then pick a deal with a little headroom. Paying for unlimited data you never touch is its own kind of overpaying.
