Can i cancel a mobile phone contract before it is due to expire and take out a new one?

Question

I have had huge bills from my current mobile phone provider and I just can't afford to keep it up. Am i able to cancel the current contract (pay off the money i owe) and start a new contract with a different provider without incurring huge charges??

The company I am with is three, can anyone tell me how long there contracts usually are?

Any help would be appreciated.

Answer 1

Your problem is not the huge bill you have run up ... that is only the symptom.

The problem is you signed a contract without a sure way to pay and/or you overused the plan.

My advice: cancel the plan and pay the cancellation fee, go without a cell phone until you have paid all the old one off, and LEARN from your mistake. This is only a small problem compared to what you could get into if you don't learn your lesson.

Good luck
Craig

Answer 2

Typically you agree to a large cancellation penalty should you terminate the contract before its expiration. The reason behind this is the "free or reduced price phone" you got when you started the contract. Those phones actually cost the cell phone company a lot more money than you pay for them. They subsidize the equipment with your monthly fees. If you don't keep your service long enough, they lose money on the phone, hence the early termination fees.

Also, the wireless companies judge their success by the number of lines they have in service, so they'll do just about anything to keep you on board.

Answer 3

Usually to cancel, it will cost about $200. Most contracts are normally 2 years.

I dont think that paying a penalty & then changing providers will solve your problem. If you cant afford this one, what makes you think you can afford another one? Most companies are pretty much the same as far as monthly fees and minutes are concerned (before anyone starts to yell at me, I know that each company has its own special thing, but I am talking just the average monthly fee vs. the minutes)! If its the monthly cost that is hurting you, reduce the plan to a lower one. If its because you run over your minutes, either cut back on the calls or increase your plan.

Answer 4

Depends on the contract you agreed to. If you know you agreed to a three-year agreement, then you are going to most likely have to pay to get out if you want to walk away. The cell contracts I've seen usually charge at least $175 to cancel the contract, but I've only seen two year contracts. Three sounds a bit long to me, but if you agreed to it, there's probably not much you can do. Also, the contract usually states they can attempt to require you to pay what they could have reasonably expected to get out of you for the remaining term of the contract. I've never seen that done, but it's usually in the contract and they could try to enforce it.

However, many cell phone companies nowadays will allow you to change your service without penalty. It might be worth asking if they will allow you to select a different plan and not be penalized. That would probably be your best option at this point.

Answer 5

they ussually make u pay off the rest of the plan for your contract, which is usually either 2 or 3 years(probably 2). it aslo depends on how long u hav had the plan for and if your want to keep the phone u got with the plan, which would also probably cost even more. Personally, if i'me tied down to a costract like that, i would rather finish it off b4 trying to get a new one coz it's cheaper in the long run, and it dussnt take all the money out of your pocket at once. Try to find your original document that u got the phone with, it should all be clearly stated in the fine-print at the bottom of the page.

Answer 6

No you can't cancel without paying up for the rest of your contract. The contracts are usually 1 year but check with them to be sure. You could ask them if they have a better priced package and is there an option to change.

Answer 7

Contracts are usually between 1-2 years and they have cancellation clauses ranging between 150-200 for the cancellation.

What I have done is to seek the best offers from my current provider (at lest cost) and asked them to change plan. They will do it without you having to pay a cancellation fee.

Answer 8

Contracts are usually two years. If you are going over your minutes, try upping your level. That alone can save $100s. Some places will give you a month to try the service, but usually if you want to cancel there is a fee around $150-200. I would check your plan minutes first.

Answer 9

i have just cancelled my 3 contract. what you need to do is call up and lower your tarrif to the minimum rate. after you have done that, wait a week or 2 then call up and ask to cancel. the cost will just be the combined amount of months left multplied by price of tarrif. beware though as most price plans are 18 months long. to cancel i think you need to be at least halfway through yor contract. shops like phones for you often offer to buy out your contract. the will give you cash or a cheque to cover the monthly costs but only if you take out a new contract with them. hope this makes sense.

Answer 10

You need to read the contract you signed with your current mobile phone service provider. There will be some financial penalty for early termination of the contract.