Getting a mobile phone

Mobile phones can cost much more than you think. Some services may seem cheap, but costs can quickly add up and the service may be hard to cancel.

There are different mobile phone plans on offer. The 2 main types of plans include postpaid and prepaid. Both plans can offer voice, data and text inclusions for 1 price.

A prepaid service means you pay first so you can’t overspend but the calls may cost more on a prepaid plan.

Before you choose a plan, think about what you will use your phone for (games, watching videos, listening to music) and how much you will use it. You don’t want to end up paying more than what you need.

Don’t get caught out

A mobile phone can be very expensive to own and use; make sure you don’t get caught out.

Here are some ways to avoid nasty surprises:

• Keep receipts so you have proof of purchase in case you have a problem.
• Check if an app costs any money before you download it. Even if it’s cheap, costs will add up if you buy a lot of them.
• Lock your phone using a PIN or password. This way, nobody can use it without you knowing.
• Don't buy a phone for someone else. Your name is on the bill so you will have to pay for it.

Before you sign a contract

Some steps to take:

• Ask yourself if you really need the mobile phone.
• Ask yourself if you can afford it.
• Shop around to compare prices, services and plans.
• Take the contract away to read the fine print and look for hidden fees and charges or have someone you trust explain them to you.
• Think about buying prepaid cards. This way, you only spend what you can afford.

Some important questions to ask the salesperson:

• What are the fees and charges?
• Will it work where I live?
• Does it have a warranty?
• What can I do if it’s broken, lost or stolen?
• What if I want to change or break the contract?
• What’s the total cost I’ll pay over the entire contract?

After you sign a contract

Once you have your new phone:

• Get a copy of the contract and keep it in a safe place.
• Tell the trader if your mobile is lost or stolen.
• Tell the trader if your life changes and you can’t afford the phone anymore (like if you lose your job).

Learn more about avoiding big mobile phone bills.

Don’t take the risk!

Read and understand the contract

Jack bought a new mobile last month and, at first, he loved it. He started social media accounts, streamed music and watched lots of YouTube videos.

He received a text from the mobile provider, saying that he had gone over the data allowance in his plan. He didn’t know what that meant, so he kept using the mobile as he had been.

Then Jack got the bill. It was much more expensive than he expected because he had gone over his data allowance, which costs more than the plan he signed up to.