My mobile phone contract is expiring soon and, in the middle of a house move, I’m trying to find ways to reduce outgoings. At first I was looking at getting the Sony Ericsson Xperia Arc, as I knew that was reasonable affordable. However, for the same money I’ve now, amazingly, found the Galaxy S II.

The details are as follows…

[box]Network: O2

Contract: 24 months
Phone cost: £29

Minutes: 100
Texts: 500
Mobile internet: 500MB[/box]

If all of that seems acceptable to you then it’s available from Dial-a-phone for just £21.50 a month.

And here’s how to make it even more affordable.

1. O2 provide superb home broadband – I use them myself. They’re already competitively priced but if you have a phone with them you get a further £5 off per month. And they do home phone as well for just £7.50pm (inc. line rental). Combine all 3 and it will really save you some money.
2. Use Quidco. Dial-a-phone are currently giving £50 cash back. If you also decide to switch broadband as well you can get up to £110 cashback from them.

So, in my case I’d get the Galaxy S II and home phone and broadband (on their all rounder package) for £44 p/m. It would cost me £29 up front for the phone but I’d also get £140 cash back from Quidco.

 UPDATE: The handset price is now £69