This is probably where people can save the most amount of money. If you don't need anymore than 500 mins. & 500 texts then Top tip: Do not spend more than £20/month on your phone. If you are, then you are throwing money away. With a little bit of research (or using Matt's Deals Alert to help) you can easily obtain a good phone with approx. 250 mins. or more plus 100 texts for less than £20 and that is before you even look at the deals around that involve cashback!

The place to go for the best deals on mobile phones always seems to be e2save or mobiles.co.uk. The reason why the line rentals are so low is because they provide an effective cost due to cashback. It still surprises me the number of people who don't like the idea of cashback. Either because they think it's a con or because they can't be bothered to send their bills back 3-4 times a year to obtain their cheque. If someone said to you "send us a letter 3 times a year and we will send you 3 cheques worth £60" most people would do it. There
is no difference with cheque backs. Believe me I have been doing it for several years now and I have always received my cheques quickly. As long as you make sure you send your bills back when they say and obviously go with a reputable company (both e2save and mobiles.co.uk are partners of the Carphone Warehouse).
For those who aren't familiar with the cashback scheme.....basically you sign up for a contract phone (most often a free phone) and pay the normal line rental every month (let's say £25/month) but they offer 12 months line rental half price. Therefore over the course of the year you will receive cheques totalling £150 (£12.50 x 12 months). However, there are now deals out there that offer such good cashback that you can be effectively paying only £1.99 month. Don't believe me check out these great deals.