Buying out of a contract

Shezz

My SIL has got herself into big big financial problems, I am looking into ways that would help her to reduce her monthly outgoings.

At christmas she got 3 contracts out 1 for herself and one each for her boys tut! tut! ok at the time they were working and given her rent (temp christmas jobs only) both boys are now no longer working or getting any jobseekers allowance, so I have told her to sell the phones and with the money that she gets for them, she should pay herself out of the contracts, think she got 18month contracts out on them.

if the contract was @ 35.00 pm do we calculate that by x amount of months she still has left on her contract, and that would be the amount she would have to pay back, or is it less then the monthly payment.

Thanks for any advice

Shezz

OneADay

If you pay off the remaining months line rental to end contract, you won't be paying VAT - so its 20% saving you could say. So £29.17 approx per month rather than £35.

grumbler

Shezz wrote: »

...
if the contract was @ 35.00 pm do we calculate that by x amount of months she still has left on her contract, and that would be the amount she would have to pay back,

Yes, but AFAIK Orange and Voda 'don't charge VAT' on the termination fee, that means that you get about 1/6 discount

or is it less then the monthly payment.

Not exactly, but normally your bills include an advance payment for the next billing month.

OneADay wrote: »

If you pay off the remaining months line rental to end contract, you won't be paying VAT - so its 20% saving you could say. So £29.17 approx per month rather than £35.

Definitely it is the case for some networks only, not for all.

toddy89

Shezz, which Network(s) are the contracts on? Each network has different processes in order to leave, some of which can be exploited. Pure and simply though it is usually Months remaining x Contracted Line rental. I would assume VAT is included as your SIL is most likely contracted to £35pcm, not £27 or so without the VAT.

Have you considered or seen sites like CellSwapper where you can exchange contracts with others doing a "Transfer of Ownership." Can't post links as a new user, but Google that and you'll get the picture.

Shezz

toddy89 wrote: »

Shezz, which Network(s) are the contracts on? Each network has different processes in order to leave, some of which can be exploited. Pure and simply though it is usually Months remaining x Contracted Line rental. I would assume VAT is included as your SIL is most likely contracted to £35pcm, not £27 or so without the VAT.

Have you considered or seen sites like CellSwapper where you can exchange contracts with others doing a "Transfer of Ownership." Can't post links as a new user, but Google that and you'll get the picture.

I'm very vague at this moment about what mobile network she is with or even amounts per month she is paying, literally got a phone call last night from inlaws in a panic as she has the baliffs going around there today for non payment of council tax, so I lent my inlaws the money to pay x amount off to keep them at bay.

will get the full info tonight I hope, but needed to know what I was talking about before I made a right fool of myself, thank you so much re: CellSwapper

will google it right now

Thank you all
Shezz