Last updated: August 2026
Providers run an affordability assessment before approving any contract, but that assessment answers their question, not yours. It establishes a minimum standard for lending — not what you can comfortably carry for two years without it becoming a problem.
Those are different numbers, and the gap between them is where people get into difficulty. This page sets out a method for finding your own figure.
Work out the real monthly cost first
The advertised instalment is rarely the whole cost. Before comparing anything, add:
- The monthly instalment itself.
- Once-off fees — connection, delivery, SIM — divided across the term.
- Realistic out-of-bundle spend. If you regularly exceed your data, that is part of the cost.
- Insurance, if you take it, which on an expensive handset is not optional in practice.
Then multiply by the term and add the once-off fees to get the total. A 36-month deal at a lower monthly figure frequently costs more overall than 24 months. See 24 vs 36 month phone contract.
Then test it against your actual position
- Start with income after tax and deductions — what actually reaches your account.
- Subtract fixed commitments — rent or bond, transport, existing debt repayments, insurance, school fees.
- Subtract living costs — food, electricity, everything recurring.
- Look at what remains. A phone contract comes out of that, alongside everything else discretionary.
The useful test is not whether you can pay it this month. It is whether you could still pay it in a month where something goes wrong — a car repair, a medical expense, a month of reduced income. A contract you can only afford in a good month is a contract you will struggle with at some point across two years.
Why this matters more than it seems
A cellphone contract is a credit agreement. Missing payments has consequences beyond the phone: it creates an adverse listing on your credit record that affects future credit applications for years, well after the handset is forgotten.
That asymmetry is worth holding onto. The upside of a slightly better phone is modest. The downside of defaulting is disproportionate.
If the number is smaller than you hoped
| Option | Effect |
|---|---|
| Cheaper handset, same term | Lowers instalment and total. The most effective single change. |
| Smaller data bundle | Lowers instalment; watch out-of-bundle rates. |
| SIM-only, keep current phone | Largest saving available. See SIM only deals. |
| Longer term | Lowers the monthly figure, raises the total. Use with caution. |
| Prepaid | No credit agreement, no commitment, no default risk. |
Stretching the term is the option that looks like a solution and usually is not. It lowers the monthly figure by committing you for longer on a handset that will be older when you finish paying for it.
A note on being declined
If a provider declines you on affordability, that is information worth taking seriously rather than an obstacle to route around. It means their calculation — which is conservative by design — concluded the instalment did not fit.
See cellphone contract declined, what now and cellphone contract requirements.
To compare options within a realistic budget, see cheapest cellphone contracts, budget deals, deals under R300 and best contract deals South Africa.
Frequently asked questions
What percentage of income should go to a phone contract?
There is no fixed rule, because it depends entirely on your other commitments. The better test is whether you could still pay it in a difficult month.
Does the provider’s approval mean I can afford it?
It means you met their minimum lending standard. That is not the same as the payment being comfortable for you across the full term.
Should I take a longer term to lower the payment?
Only if the monthly figure genuinely matters to your cash flow. It raises the total paid and commits you for longer.
What happens if I cannot pay?
Missed payments can result in an adverse listing on your credit record, affecting future credit applications for years. Contact the provider early if you anticipate difficulty.
Is SIM-only really that much cheaper?
Yes, because no handset is being financed. It is the largest single saving available if you already have a working phone.
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This page is general information, not financial advice. Approval and terms are set by each provider and depend on your individual circumstances.