When you sign up for a phone contract, it’s easy to overlook the terms and conditions regarding cancellation fees. However, life is unpredictable, and circumstances may arise where you need to cancel your phone contract before it expires. So, how much does it cost to cancel a phone contract? The answer depends on your carrier, the terms of your contract, and how much time is left in your agreement.
Cancellation fees are usually charged to customers who terminate their contracts before the end of the agreed-upon term. The amount of the fee typically depends on the remaining balance of the handset and the cost of the monthly service charge. The fees can range from a few hundred dollars to over a thousand dollars, depending on the carrier.
For example, AT&T charges an early termination fee of up to $325, which is prorated based on the number of months remaining in the contract. Verizon charges a similar fee of up to $350, while T-Mobile`s fees vary depending on the type of plan. Sprint`s early termination fees are the highest, with customers potentially owing up to 50% of their remaining balance.
It’s important to note that some carriers may also charge a processing fee for cancelling your contract. This fee usually ranges from $10 to $50. Customers may be able to avoid this fee by cancelling their contract in-store rather than over the phone or online.
One way to potentially avoid cancellation fees is to transfer your contract to someone else. Most carriers allow customers to transfer their contract to another person, as long as they pass a credit check and agree to the terms of the contract. This process is called an “assumption of liability” and can be a good option if you need to cancel your contract early.
In conclusion, cancelling a phone contract before it expires can be costly, with fees ranging from a few hundred to over a thousand dollars. The exact amount of the fee depends on the carrier, the remaining balance of the handset, and the time left in the contract. However, transferring your contract to someone else may be a viable option to avoid cancellation fees altogether. Always read the terms and conditions of a phone contract carefully, and consider all your options before making a decision to cancel.