The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: martynthewolf on May 31, 2013, 08:05:19 AM
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I currently have just under a year left of my mobile phone plan.
It works out at roughly £30 a month, I get 3000 minutes, unlimited text messages and 250mb data for that. To pay off the rest of my contract I'd be looking at about £350. I could then move onto a no contract plan with a company called Giff Gaff (http://giffgaff.com/), where I could pay £12 a month for 250 minutes unlimited texts and unlimited internet.
Does it make sense to do this asap or just wait until the contract runs it's course?
I can't seem to figure it out.
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If you paid off the contract now, it would take about 19.5 months to "break even" (30-12 = 18. 350/18 = 19.4444). Since 19 mo > 12 mo (or however long you've got left), you're better off to finish out the contract.
To put it another way, if you have 12 months left at 30/mo, you'll pay 360 over that year. If you pay 350 now, AND 12/mo, in a year you would have paid 494.
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Cheers netskyblue that's just what I needed to hear. not sure why this:
To put it another way, if you have 12 months left at 30/mo, you'll pay 360 over that year. If you pay 350 now, AND 12/mo, in a year you would have paid 494.
didn't occur to me.
I appreciate the quick feedback.