If you`re looking to cancel your phone contract, there are a few things you need to know. First and foremost, you will likely be required to pay a fee for ending your contract early. The amount of this fee can vary depending on a number of factors, including the type of contract you have and how far along you are in your contract term.
To get a better idea of how much you can expect to pay to cancel your phone contract, it`s important to understand a few key terms and concepts.
Early Termination Fee (ETF)
An Early Termination Fee (ETF) is a fee that wireless carriers charge customers who cancel their contract before the agreed-upon term has ended. The ETF is designed to cover the cost of the phone subsidy that the carrier provided at the beginning of the contract.
The amount of the ETF can vary depending on the carrier and the type of contract you have. For example, some carriers may charge a flat fee of $350 for canceling a contract early, while others may charge a prorated fee based on the remaining months of your contract.
Prorated ETF
A prorated ETF is a fee that`s calculated based on the number of months remaining in your contract. For example, if you have a two-year contract and you cancel six months early, you may be required to pay a prorated fee that`s equal to half of the ETF.
No ETF plans
Some carriers offer plans that don`t require an early termination fee. However, these plans may come with higher monthly fees or require that you purchase your phone outright.
Bottom line
While canceling a phone contract early can be expensive, it may be worth it if you`re unhappy with your current carrier or if you`ve found a better deal elsewhere. Just be sure to read the fine print and understand the terms of your contract before making any decisions. And if you`re unsure about any of the details, don`t hesitate to reach out to your carrier`s customer service department for assistance.