a 12 month deal and paying a contribution towards the handset normally works out cheaper every time.
for example, last year when i bought the iphone 5s
i took out a 12 month contract at £57 a month (i get 20% discount on this figure, but we will ignore that for now)
over a year that contract will cost me £57 x 12 = £684
plus i had to pay £249 for the phone up front
Total cost = £684 + £249 = £933 for the year.
if i had bought the phone outright and stuck in a 12 month sim card it would have been:
cost of phone - £709
12 month Red L sim card deal - £31 a month - total sim cost over a year = £372
Total cost = £709 + £372 = £1081
Almost £150 saving in total. Ok, it is not going to make me rich, but doing it the way i have done it has worked out cheaper for me every time. And i can just sell the 5s when the time comes and use that money towards the cost of a new handset.
