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best way to get out of a contract?
i have a contract with o2 for the iPhone, its £35 + £15 insurance, i know im an idiot, but its been 6 months now (12mnth remaining) and im out of a job, i cant afford to pay the monthly contract, i want out, idealy without payng anything.. whats the best way? thanks
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There isn't one, unless you want your credit record trashed. You have to see your contract out or pay an early termination fee.
Have you checked if you can at least cancel the insurance without penalty? You are paying £270 over the life of the contract just for the insurance!No free lunch, and no free laptop0 -
best way is to sell the phone and then use that money to pay off as much as the contract as possible.
Moral of the sotry is that there is no easy or cheap way out of a contract.0 -
As above, no way out, you were given a top of the range mobile phone at a huge discount on the understanding you could pay for it. Never sign contracts unless you know you can afford for the full term.
Best thing you can do is get another job and keep on paying, failing that sell the phone and try ask for an early settlement figure. Basically insurance is extra so cancel it, that leaves 35 * 12 = 420. Now selling the phone will cover most but not all off that. Leaving you only a £100-200 to find to pay up. The final price maybe less given a settlement figure otherwise just pay the £35 a month out of the phones sale and find the extra required over the next few months,
If you still cannot afford it tell 02, they may be able to help but it is very unlikely, they arent keeping loyal customers as it is anyway
If you fail to pay, you will get a default (good bye credit rating), still fail to pay debt collectors, leading to CCJ. CCJs unpaid means bailiffs + bailiff charges. They will want the money.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
thanks for the advice, looks hopeful for a new job anyways. is there a cheaper iPhone insurance out there(that covers everything)?0
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Not that i'm aware of, IPhones are high risk in value, accidental damage and a target of theft. So high insurance premiums.
Give this a read though - http://www.moneysavingexpert.com/insurance/cheap-mobile-phone-insurance
Never know Barclays Bank may cover it.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
https://www.talkcover.co.uk/instantquote-mobile-insurance.asp - £6.74 for IPhone 3GS but the terms may not be as good as what you already have, i.e. loss i never covered.
https://secure.idms.co.uk/cusc/ - ~£6 but unsure of terms.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
Stuff like this makes me sick. "I entered into a contract but now I can't/don't want to pay, so how do I get out of the contract for free?"
You knew the consequences of entering into a contract before you agreed to it. How would you feel if O2 suddenly turned round and said they were cancelling your contract because you were costing them more money than they were making from you? You'd be livid and say its totally out of line, yet it would be ok if you were to do it to them.0 -
best way out of a contract is to die. sad but true, however even then it may pass on to your NOK. check the small print first, after all you don't want to lumber them with funeral arrangements AND a contract phone they don't want.
bit of a drastic way to save a few quid though, even if it isn't completely unheard of.GREENS M'SHIP OFFER NOW CLOSED SO PLEASE DON'T ASK ME!Olympic Debt-free Challenge £2150/£11900 = 18.0%NOW INVESTIGATING AN ALTERNATIVE TO MY IVA - I WOULDN'T RECOMMEND ONE ANY MORE!0 -
best way out of a contract is to die. sad but true, however even then it may pass on to your NOK. check the small print first, after all you don't want to lumber them with funeral arrangements AND a contract phone they don't want.
bit of a drastic way to save a few quid though, even if it isn't completely unheard of.
Haha, nice one. Although the debt wouldn't be transferred onto a NOK as it would be deemed unsecured.0 -
timberflake wrote: »Stuff like this makes me sick. "I entered into a contract but now I can't/don't want to pay, so how do I get out of the contract for free?"
You knew the consequences of entering into a contract before you agreed to it. How would you feel if O2 suddenly turned round and said they were cancelling your contract because you were costing them more money than they were making from you? You'd be livid and say its totally out of line, yet it would be ok if you were to do it to them.
In some ways, I agree with you and you are technically right. I have posted many times that sim-only 30-day rolling contracts are the best way - and one of the cheapest - of using a service primarily for voice and text.
But, like the country as a whole, people get themselves into credit debt because they want the latest gizmo and are persuaded to by the advertisers, peer pressure and keeping up with the Jones's. Then, when the unexpected hits them - such as losing a job - they suddenly find that they can no longer afford the monthly payments and try to get out of it.
Now I have every sympathy for people made redundant and the change to their standards of living - I have a number of friends who have lost jobs in recent years. And I think you may have been a little more temperate with your otherwise correct message given that the OP is looking for a job.
But I come back to my position - Do not take on any credit -except mortgage perhaps - that you do not really need if there is another way round it. In this case, there is. 20-day sim contracts and buy your own phone.0
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