Smartphone lovers, you might be paying more than you need. Should you go on a plan or buy outright?

AUSTRALIANS are addicted to their smartphones but working out whether to sign up to a plan or go for a SIM-only deal can be complicated — and costly.

AUSTRALIANS are addicted to their smartphones and working out how to get a good deal can be confusing.

Signing up to a lock-in contract with the trendiest smartphone included often comes at a hefty price and consumers may be spending far more cash than needed.

Telco provider Vodafone’s general manager of postpaid Antony Sault said SIM-only plans have become “increasingly popular” in recent years.

“There are some easy ways to save but come with a little commitment,’’ Mr Sault said.

“Most carriers provide no lock-in contracts (or month-to-month plans) which are great if you need flexibility, but you’ll find most carriers increase value substantially on a 12-month plan.

“But whether you decide to purchase a smartphone on a contracted plan or bring-your-own device with a SIM-only plan it’s always important to talk to your telco to see what deals they have on offer.”

Our love affair with smartphones means the right plan is essential.

But telco comparison website WhistleOut’s spokesman Joseph Hanlon said in regards to price “there isn’t a great difference between buying a new phone on a contract or buying it outright and pairing it with a SIM-only plan these days,’’ he said.

“For example, if you buy a iPhone 7 on a Virgin Mobile plan with 8GB data you’ll pay $1940 over the two year contract.

“Alternatively, if you buy the handset from Apple and choose a cheap SIM-only plan with the same data inclusion, the two year total starts from about $1990.”

RELATED: The money mistakes that tear families apart

RELATED: Common myths stop customers switching funds

The rollout of wi-fi at designated locations also helps consumers chewing data watch their dollars and can mean they opt for a cheaper phone deal.

There’s now more than 900,000 Telstra Air wi-fi hot spots in Australia, which also allows personal mobile customers to get unlimited wi-fi free data.

Growth of wi-fi hot spots around Australia are helping people to ease their mobile data usage. Photo: iStock

“Hot spots are located in places people like to spend time in including parks, beaches, city and town centres and some of Australia’s most popular holiday destinations,’’ Telstra spokesman Steve Carey said.

“This can help keep mobile data and international roaming costs in check.”

The telco giant also has mobile swap plans for anyone on a 24-month contract that allows customers to upgrade their handsets at any time after 12 months for $99.

They can upgrade their handset for free at the 18-month mark.

But Mr Carey said for those not fussed about having the latest handset and they don’t suck much data they “might the best value out of a prepaid of SIM-only plan.”