Thinking of going with a cheap placeholder plan to avoid paying off a big balance/contract?

[WearySky]

If you're thinking of just going with a cheap placeholder plan to avoid moving to PM right now (because of an existing device balance), make sure you do the math first.  Basically, your device subsidy needs to be going down by more than $23.33 per month (roughly, plus tax) to make it worth the hassle, and that's only if your plan is the exact same price as Public Mobile.  Why?  I'll lay it out:

- The cheapest plan you can get to keep an active PM plan open for 90 days is the $70 text-only plan.  That works out to about $23.33 a month.  You're paying that $70 for absolutely nothing, since you're not using your PM plan during those 3 months (it's just a placeholder keeping your account open so you can take advantage of the current promo down the road).

- Say your device subsidy is only $20 a month.  In 3 months, that means your outstanding device balance is only going to be $60 lower than it is today.  So you've paid $70 to PM in order to pay $60 less on your device subsidy.  It just doesn't make sense!  

And as I said, that's only if your bill is exactly the same as PM's rates (which is highly unlikely).  If you are paying, say, $50 more a month to your current provider (which is about what I was paying per line), that means you're paying $220 extra in order to save paying that $60 extra for your device subsidy. Really, the *only* reason not to switch would be if you don't currently have the money to pay your full device subsidy right now.

[mylabmax]

@WearySky just pulled the plug.  Unlock fee is $4.99 for an LG G3.  Thanks

[WearySky]

@mylabmax it might not be the same price for your phone (since it's been quite some time since I did mine, I don't know if prices are the same), but it should definitely be cheaper than unlocking directly with your provider.

[mylabmax]

@WearySky, the unlock fee of $8 is a game changer.  This makes it easier to switch.

[WearySky]

@mylabmax I used Mobifree to unlock my wife's Rogers Galaxy S5 at the beginning of the summer.  Cost me $8.  

[mylabmax]

This is really a good post and I came to the same conclusion as well last night (Excel was working overtime).  I plugged different scenarios and the difference will be a immaterial.  You may just bite the bullet, transfer and pay out the device.

Also, If I may add, you should also factor in any sign-up bonus you received.  For me, I got a $200 GC and this may be enough to cover the tab.

Another thing to consider, atleast for Virgin Mobile Customers, is the discounts you get with your plan.  You should also consider how important they are to you.

On another note, does anyone know a trusted and cheaper way to unlock an android phone?

Thanks

[WearySky]

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@Luddite wrote:

Quite a bit tougher to exit if they signed up for a 2 year deal om services though.

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If you signed up for a 2 year deal on services (no device subsidy), it's actually way easier to decide to switch.  $50 (max) cancellation fee, and boom, you're gone.

Edit: and yes, bolded that line for emphasis, good point. 🙂

[Luddite]

@WearySky Totally agree but you needed to bold "Really, the *only* reason not to switch would be if you don't currently have the money to pay your full device subsidy right now."!  ©

I suspect folks do not realize they are paying for their cheap/free phone over time and that amount is simply being added to the real cost of their cellular service.

Quite a bit tougher to exit if they signed up for a 2 year deal om services though.

[WearySky]

@meekju1339 - most consumers don't actually *have* any cancellation fees, per se.  If you have a subsidized device, your cancellation fee is not allowed to be any higher than your device subsidy, period.  If you don't have a subsidized device and just have a contract (which seems like a crazy thing to do, unless you were offered the sweetest deal in history), the early cancellation fee must not exceed the lesser of $50 or 10 percent of the minimum monthly charge for the remaining months of the contract, up to a maximum of 24 months, so it's still a maximum of $50 (which means it makes even less sense to go with the "pay $70 for nothing" route).  Check out section G in the Wireless Code

[meekju1339]

Yes you are correct. Alot of people just skip the math and jump right into it. That is a bad idea. However, doing this is a good idea for people who within those 90 days will be completely out of their contract. This is because one thing that you didnt consider is cancellation fees which are associated when people buy out of their contract sooner. Each case is different but people should be aware of what he is saying and also consider what I am saying to be sure which option is best for you. 

Have a good day guys 🙂