help please. contract has become unaffordable

[psychosurfer]

hi all

 

im a year into a 2 year contract @ £37 a month.

things are at a point now that i have cut down on everything

and the mobiles are the next thing to have to go.

 

my question is what will happen if i contact t-mobile and explain i cannot pay my bill.

 

can i reduce my plan?

 

if i can will it be enough to make a difference?

 

what happens if i just cancel my dd and tell them i cant pay.

 

Also can anyone give me any advice on the best route to take.

 

thanks all in advance.

[dx100uk]

canel the contract in writing

 

you might get a one off fee

 

but it wil be cheaper than the whole of 12*£37.

 

dx

[marmaris30]

There is usually some flexibility, especially after 12 months.

 

If you cancel outright then there will be a cancellation fee, which as DX says, will most likely be less than what you'd have had to pay otherwise, but of course for no further service. Depending on the phone you have and how long you've been with the network, they might want the phone back, although I'd say that's unlikely. Assuming you keep the phone, you could then go PAYG or just sell it.

 

Alternatively, they will usually let you switch to a cheaper tariff after 12 months - the point you're at - to a certain extent. It's always worth explaining your situation and seeing what they offer.

 

If you just stop paying without making any arrangements then they will pursue you for the full contractual amount, and report missing payments on your CRA file. Whether you want to get into that or whether it even matters to you personally is up to you, but I wouldn't recommend it.

[psychosurfer]

Ok thanks guys. I'm going to ring them today explain the situation and see what they can do for me. If they are unwilling to help can I just make an offer to pay outstanding costs?

[MaxxPower]

What type of phone is it? For that kind of monthly fee over 24 months I'd expect it to be a fairly high end device. You might be able to get a settlement fee and then sell the handset to actually pay that cost. Yes you're left with no phone, but you're £37/month better off and you can pick up a basic PAYG handset for less than that.

[psychosurfer]

It's an iPhone 5 64gb. I did think of this but was not aure if t-mobile would allow me to end my contract early.

[MaxxPower]

Assuming T-Mobile allow you to keep the handset (which they should if you make an agreement to pay a termination fee) then selling it should more than pay the termination fee and give you some cash leftover. Used unlocked handsets are going for around the £300 mark on eBay, so try and get an unlock code from T-Mobile as part of the termination.