Can I Have A Mobile Phone Contract In A Trust Deed?
It’s a question many people ask Trust Deed Scotland when they are considering entering a Trust Deed or alternative debt management solutions in Scotland. A question that can stop some of those individuals from applying for a Trust Deed due to a fear of the unknown.
The short answer is yes, yes you can have a mobile phone contract while you’re in a Trust Deed.
A mobile phone is an expenditure that is approved in almost all cases if the contractual amounts are reasonable. It’s often a question of affordability and helping to ensure that you can afford to make regular contributions during the term of your Trust Deed.
Shopping Around While In a Debt Solution?
You can shop around for a new mobile phone contract while in a Trust Deed and even complete the whole application online if you are worried about being rejected for a new mobile phone contract in person.
Consider comparison sites such as Carphone Warehouse or providers such as GiffGaff.
You can also apply online using the mobile phone provider’s direct websites – EE, Three, O2, iD, Vodafone and depending on your current television package, you may also consider Sky Mobile or Virgin Mobile.
Tesco Mobile is another mobile phone contract that you can consider.
When considering which mobile network, plan, and handset you should consider how much you would typically call and send text messages and how much data you typically use. For example, do you utilise Wi-Fi in your home, place of work or for example.
Travel companies such as Scotrail and First Bus tend to offer limited Wi-Fi services on their vehicles, which can reduce your data consumption while commuting and lower your average monthly data requirement. Most supermarkets, bars, coffee shops and retail shops offer their customers Wi-Fi too.
When connected to Wi-Fi, you can use free app services such as WhatsApp and Telegram to send your family and friends text messages or make calls to other mobile users and they offer a realistic alternative to picture messaging.
You can make calls to other mobiles using Facebook Messenger, Skype and a variety of other apps.
NOTE: If you do change from using your mobile data to Wi-Fi, you should always seek permission first with the bill payer and be wary of any surplus data charges from your broadband provider.
Contract vs Pay As You Go Mobile?
A mobile phone contract may not always be the best solution for you. Pay as you go, can be just as effective while in a Trust Deed, depending on your mobile phone needs. Here’s why:
1. Cheaper Monthly Cost
If you consider a pay as you go arrangement while in a Trust Deed, you have the immediate advantage of not needing to pay the cost of buying the handset.
It’s often marketed that the handset is free when you sign a new 12-24 month mobile phone contract, but the truth is that you cover the cost of the handset over the fixed term of the contract.
The newer, more expensive mobile phone handsets incur a higher monthly cost and you will then pay more on a monthly basis therein. In what’s referred to as an upsell with payments broken down into small increments to make them sound insignificant, an extra payment of £10 per month over 24 months to flip your new devices storage space from 32gb to 64gb will cost you £240 over 2 years.
Upgrading from a standard colour to the latest in-trend colour can cost you an extra £5p/m – £120 over two years – is the newest colour really worth that extra cost, especially since most people nowadays buy a protective cover that obscures the handset’s colour.
2. No Overpayments
Consider charges that you may incur outside of your contract plan. Data, calls, picture messaging. These charges all add up. With pay as you go, you set the budget and never need to worry about a sudden increase.
3. Greater Flexibility
Mobile phone contracts typically incur early cancelation charges and often do not allow you to carry over surplus data, minutes or texts.
Therefore, if you’re paying for 4gb data but only using 2gb per month; you’re still paying for 4gb regardless. You can buy more data, more minutes and more text as add-ons; but this will increase the cost of your mobile phone whilst in your Trust Deed.
4. More Freedom
With a PAYG mobile while in a Trust Deed, you have the freedom to move providers whenever it suits you. Therefore, if you want to move from EE to Vodafone, you can do this easily.
Can I Add My Old Mobile Phone Debt To My Trust Deed Or DAS?
Yes. If you don’t intend to use that same device as your current mobile phone.
You can usually add old mobile phone bills debt to your list of creditors, but if you want to add this to your Trust Deed or Debt Arrangement Scheme, you need to ensure that the contract has already been canceled and expect that any early cancelation fees will also be added to your debt with the provider and will increase your total level of debt. You cannot add mobile phone arrears to the plan and expect to be able to still use the device(s).
The same provider is then unlikely to offer you a new contract while in your Trust Deed.
Trust Deed Scotland Are Here To Help!
If you’re struggling with your debts and you’re finding that having a mobile phone is an expense too far, Trust Deed Scotland can help by giving you personalised debt advice.
Their qualified debt advisors give confidential, non-judgmental advice on the pros and cons of any debt solution that you may qualify for.
Having advised over 20,000 people in Scotland and with having collected thousands of five-star reviews, Trust Deed Scotland always have their clients’ best interests at heart.
Call 0141 221 0999 for advice or find out what your options are by completing the Trust Deed Wizard online.