Pay off phone plan and go pay as you go?

[martynthewolf]

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, 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.

[netskyblue]

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.

[martynthewolf]

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.