Phone contracts are a great way to access the newest smartphones without a major upfront cost. Contract terms vary from 18 months to around 36 months, though you may be able to find shorter timespans with older phone models depending on where you sign up. However, for the newer phones, 12-month contracts are basically a thing of the past, and that includes the option to upgrade too. There are still plenty of reasons that will bring you to wanting to cancel a contract, and it’s important to know what the best options are for doing it. This guide covers all the facts.
How to Cancel a Phone Contract Without Paying
There are not too many options when it comes to cancelling a phone contract without having to pay some sort of fee. The most obvious way to make this possible is that you must have fulfilled the length of your contract naturally and are now using the phone on a rolling monthly billing basis.
Contract Ends
If your contract is within 30 days of its natural conclusion, there should be an option to tag out early before the end date. This means that you have the option to upgrade or end the deal with your current device and look for a better option, or maybe you already have one in mind. This is a good option for people who can’t wait any longer and need to have a new phone in their pocket before their contract officially finishes.
The Cooling Off Period
Most credit agreements like this have a cooling-off period worth observing. Generally, this is stipulated as the first fourteen days of a contract. As long as you have maintained the phone in a pristine condition, you should have the right to return it and end the contract without facing any fees at all. This should all be explained in your pre-contract terms and conditions, which are always worth taking the time to read over so you have all the required information to make the best decision about your finances.
Your Bill Has Increased
This is only relevant if your mobile phone bill has increased NOT in line with current inflation measures. Where a payment is demanded that exceeds economic inflation standards, you are within your rights as a consumer to either demand a lower price or end the contract without penalties. So, if you think you are currently paying too much or you have seen a major increase in your bill in the latest update, investigate this option as it may be a golden ticket.
What Kind of Fees Could You Be Facing
There are several reasons why phone companies charge fees when a customer wants to opt out of a contract before the term is up. It protects them in a business sense from a whole load of lost revenue and ensures that they are not putting the company in a detrimental position stock or capacity-wise either. Expect to pay at least an early cancellation fee but think about that and the following things too.
Early Cancellation Fee: Explained
The early cancellation fee is defined by what you will be asked to pay for forfeiting a contract before the date is due for completion. You are obligated to pay because you are the party terminating a credit agreement before the time is up. You have the phone, and that is essentially what you are paying for as a part of your deal, so it makes sense that the network will need to recuperate these costs.
Paying The Remaining Months
Some networks bypass the set early cancellation fee and instead choose to implement a fee to pay the remaining months. This means you are required to pay the remaining cost to cover the length of your contract. This is a more expensive option and will naturally come with a higher price tag than the other ones out there.
How to Cancel a Phone Contract
Cancelling a phone contract is fairly straightforward. You will need to set aside some time to phone up your provider and speak with customer service. They will advise you about all your options and give you a figure for settling the contract early. There is a strong possibility that they could offer you a better deal on the spot in a bid to re-engage your customer profile, and it is always good to listen to these offers so that you have all the considerations on the table to pick from. It is not an option to simply decommission the phone and stop payments. This will only lead to you incurring debt and the phone company pursuing legal action against your person.
Why is It Worth Exploring as an Option?
So, if there are inevitable fees associated with cancelling a phone contract, why bother at all? Well, there are many reasons why people feel the need to move on to a new contract, and here is the top selection.
The Phone is Broken
The number one cause for seeking contract termination is because a handset breaks. The cost of repair exceeds the cost of the remaining payments or is simply too expensive as a standalone thing. Whatever the reason, if your handset breaks you will be looking for ways to get a new one, especially if you are halfway through a contract.
The Bill Has Gone Up
If the current economic situation has shone a light on anything, it is that companies have no problem at all increasing their prices. While this is sometimes a vital necessity, it is not extremely helpful for customers navigating life through a tight budget. The belts are getting tighter, and that might lead you to think about the areas where you can decrease outgoings. If your phone bill has shot up in recent months, this is an obvious answer. However, cancelling the contract may not be an option for saving money, so you have to tread carefully.
There is a Better Deal Somewhere Else
Similarly, you could have found a great deal somewhere else that will help you manage your finances better or give you an increased data allowance, etc. Whatever the reason, it is inevitable that someone out there has a better deal for your phone than you’re currently getting. If you want to take advantage of that, you’ll have to opt out of your current contract before you can opt-in to avoid paying two bills per month.
The Signal is Not Cutting It
The final reason a lot of people cite for wanting to switch providers is because they have moved house and the signal is just not cutting it. If this is the case, the provider is obligated (morality-wise) to work with you to find a solution that works for both parties. They won’t want to take the reputational hit should you decide to escalate the problem to a higher power, after all, and this is non-negotiable. If you can’t use the phone, what is the point of having it?
Cancelling your phone contract will require a conversation to figure out the best options on the table. Be prepared for fees, and make sure you have options before you end the deal, so you’re not stuck without a phone. Don’t forget, insurance is a great way to avoid living with a broken phone and being trapped in a contract.