24 month contracts

ruggedtoast

You want to know the really scary part of two year contracts?

How quickly they come round again.

esuhl

maggie111 wrote: »

That's really not average at all!

But the word "average" wasn't used in the original question.

Guys_Dad wrote: »

Try reading some recent posts - it is clearly a problem for a considerable number of MSE members.

The question was why people sign 24-month contracts in a recession. But in my example above, it might make perfect sense if it would be likely to result in reasonable savings.

Maybe the OP actually meant, "Why do people make financial commitments when their ability to meet the terms of them is uncertain?"... But that's a different question...

Guys_Dad

esuhl wrote: »

The question was why people sign 24-month contracts in a recession. But in my example above, it might make perfect sense if it would be likely to result in reasonable savings.

I agree - a "one size fits all" isn't the answer - that's why I wrote "Now that won't apply to everybody - not even the majority - and there are people who can reduce their costs by going Topcash/Quidco > Cashback reseller to get significantly reduced monthly costs."

But I do think OP is right to raise the question as I will be my shirt that there are a lot more "Help - how do I get out of this contract I can't afford" threads on here in 2011.

Katie-Kat-Kins

It is a balancing act isn't it. I've just signed up to a new 24 month contract, I would have preferred a shorter one but you weigh up the pros and cons and the risks and go for what you think it best.

There are advantages to contracts, you effectively spread the cost of the phone, the phone is subsidised, if you are a high user you probably get lower rates and you save a bit of "faff" with top ups. The trade off is that you are locked in for a period. If you are reasonably secure in your finances then this is probably a fair trade off.

Lots of people do run into trouble with their phone contracts and try to get out of them early, but this is often simply because they have been over extending themselves for a long time rather than because they have suddenly lost their job. They also often have hellishly high contracts that were, perhaps ill thought out at the outset.

I pay less than £20 a month so I don't worry too much. I also have insurance so if the phone is damaged lost or stolen I'm covered.