Category: Budgeting

Budgeting

How to Afford the Latest Mobile Phone

Mobile phone companies are always making improvements to their products and this means that customers are keen on buying them and getting hold of the latest technology. It can be so tempting to get something which does great things and is better than your friends and family have. Some of us enjoy gadgets and like to see what the latest ones can do and others just like new features or having new things. The problem with upgrading is that it can be really expensive and so affording it can be difficult.

Some people manage this by getting a phone package which includes a phone. They pay monthly and they then do not have to think about how they will find the money to afford the phone in one lump sum. Although this can be a great way to spread the cost it might work out dearer than buying it upfront and paying less each month for call, texts and data. It can be worth doing the maths and seeing whether there are other ways for you to buy it which are cheaper.

Saving up for a new phone can be an option. However, it can be hard to know exactly when a new model, that you want, will come out. This means that it could be wise to put some money away each month and then when a new phone comes out that you really want, you will have the money there to afford it. Of course, this only works if you do not want a new phone too often and you are able to save a nice chunk of money each month.

Borrowing money can be an option for some people. It can be tempting to use your credit card or other means of borrowing to pay for it. Although this could be cheaper than having a phone within a contract, depending on the deal you get, it will usually be dearer than saving up and paying outright. You may be able to find an interest free credit card which will give you time to save up the money after you have bought it and if you can pay it off before there is interest charged on it then you will not have to pay any extra. You will have to work hard in making sure that you do save up enough money though as it can be tempting to not bother, but once the interest starts kicking in, it can be very expensive.

If you do not manage to find free credit then it is worth making sure that you compare different forms of cash loans before you go ahead. There can be a significant difference in price between different types of borrowing as well as between different lenders and so it is well worth having a look around. You can save a significant amount of money in interest and possibly fees by choosing carefully. It is worth comparing them and seeing which might be the cheapest for you. However, advertised rates are not always offered to all customers, it will depend on your credit rating and so it is worth checking whether you will get that rate as well as finding what fees they may charge so that you can properly compare them.

The latest phones are always expensive and it is always worth thinking about whether you really need the latest model or not. This can be a hard decision as whether we need something is often overruled by whether we want something. We can often justify our sending choices even if know deep down that it is rather expensive. Just make sure that you are aware of the sacrifice you are making if you borrow money to buy a phone or take on an expensive contract. You will usually have to pay out each month and it could be a big chunk of money so you need to be sure that you can afford it and that you will not regret it. Try to imagine how you will feel after a few months when the novelty of the new phone has worn off, perhaps it is damaged or there is an even better one out that you would have preferred. Imagine how tricky it might be to manage those payments, particularly if you are having to go without things in order to afford them.