Searches for pay-as-you-go (PAYG) deals up 40%

The latest data from moneysupermarket.com shows searches for pay-as-you-go (PAYG) mobiles have surged 40 per cent in the last two months and are set to be a popular gift this Christmas.

James Parker, manager of mobiles at moneysupermarket.com, said: "The PAYG market has become very competitive and the host of deals on offer make them a good Christmas gift, particularly for children wanting their first phone. The surge in interest for these kinds of deals also shows people are looking at ways to manage their budget in these tough times.

"This year we've seen a raft of new deals and offers from the networks, including free access to social media websites, bundles of minutes for regular top-ups and priority tickets to concerts and events. The networks are clambering for new business, which is actually great news for consumers as there's now more value in PAYG deals than ever before."

Five things to look out for when searching for a PAYG deal:

Look for incentives such as priority tickets or cinema promotions

If you call cross network a lot, find out if your network offers inclusive anyone minutes

Take advantage of free minutes or texts by topping up regularly

Look at what internet functions are on offer - is there free access to the internet? How much does it cost?

Look for a handset that suits your needs. Look for features, like camera or mp3player, that you will actually use.