IMO you are better going for the cashback deals – IF you are organised to REMEMBER to send in the correct paperwork at the correct time.
Got £400 back on a £600 contract last time.
I’ve been doing this for years. Currently on paying net £3.98 a month each for mine and my GF’s contracts – extortionate for me – the previous contract boiled down to 99p a month 🙂
Buy the crap phone with the best terms, bin phone (or get small amount of money back on it from recycling)*, get new flashy one (usu. PAYG is cheapest), transfer SIM card and you can show off to all the kids in the playground you’re just as hip and with it as they are for a fraction of the cost.
*I struggle on with the crap ones cos I’m tight 🙂 If you’ve never had better you never know any different 😉