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6 myths about phone contracts

We all have those lovely shiny gadgets but here are 6 things you probably don't know about them.

1) You can't terminate your phone contract at any time;

Yes, you certainly can. In most cases the phone provider will require a 30 day notice after which you can simply hand back the phone. Most providers will impose a heft early repayment charge and you might find this very persuading to sit the rest of your phone contract out.
However there are two instances where you can cancel your phone contract without any penalty.

The first is within the 14 day cooling period if you bought your phone online or over the phone.
The second is within 30 days of receiving notice from your provider that your monthly charge or rate will be going up.

2) The phone is free:

No, the phone isn't free. You actually pay for the phone as part of your monthly payments every month and in most cases you usually end up paying more for the phone than you would have if you had bought it outright.

3) Your monthly payment is fixed:

No, your monthly payment isn't fixed, your mobile phone provider has the right to increase or decrease the rates at their discretion and the can do this at anytime. In Fact, they have done this before. They do have to give you a 30 day written notice and at that point(within 30 days) you can decide to leave the phone contract for nothing or continue with their new rates.

4) Phone upgrades are free:

No, phone upgrades aren't free. In reality you enter another 12 o 24 months contract and pay a fee to leave your current contract and in some cases you end up paying a higher monthly rate and usually end up paying more for the phone than its worth over the term of your contract. So phone upgrades are very far from free.

5) You can't get a phone if you have bad credit:

In Fact you can, the phone you will get will just not be so comparable to others you will be able to get if you have a better credit score. You will have to settle for a less flashy and cheaper phone.

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6 myths about phone contracts
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