Can I leave AT&T if I still owe on my phone?
You have an AT&T service contract for your mobile device, but you want to switch carriers before the end of the contract, and you are wondering - can I leave AT&T if I still owe on my phone? The short answer is yes, but there are some important things to note about leaving AT&T before you’ve paid off your phone.
The Early Termination Fee
First, it is disclosed that AT&T Internet does indeed impose an ETF if the customer should choose to cancel their service agreement. Well of course the exact ETF amount depends on many factors including but not limited to, the time you signed the contract, the plan you have, and how much you still owe on the phone. In general, it will be $180 minus $5 for each full month of the contract term you agreed to perform. If you have only another 6 months left for the period when the contract was signed to be effective for 2 years, then the ETF would be close to $90. This ETF must be paid when you cancel.
Paying Off Your Phone
Apart from the ETF, you are required to meet the balance of the outstanding amount on the AT&T phone when you call it off. The phone itself is often bought on an AT&T installment plan where the consumer pays a fixed amount every month until the total price is reached. When you do not want to receive further services, whatever is remaining on the installment plan is due and payable at once.
For instance, if you initially paid $300 for a $1,000 phone and you still have to clear a $700 balance before returning the phone, you will have to clear that $700 when paying the ETF fee on top of it. Yes, you do have other options other than paying the full amount on that phone such as paying for the phone in installments even without having to subscribe to AT&T.
Unlocking Your Phone
First, you have to ask AT&T to unlock it, which they are obliged to do under the FCC rules if you have not fully paid off the phone and you wish to use your current AT&T phone on another carrier’s network. The unlocking process might take up to 48 to 72 hours, depending on the circumstances. Some devices might also require unlocking, and thus, you should refer to AT&T for this particular matter.
Moreover, certain carriers, such as Verizon and Sprint, operate under CDMA networks, which are incompatible with AT&T’s GSM networks. Therefore, even if your phone is unlocked, changing carriers will not be ideal if the hardware is not appropriate for the intended use. This is something that you will need to verify before making such a change.
It is often a good idea to buy out your contract
Instead of having to pay the early termination fees and the amount owed on the phone bills, it may be more advantageous for some customers to continue paying the balance on their contract instead of not paying it at all. Though can be costly, is free of termination fees, does not require you to pay off your device balances at once and you get to keep your phone including any data. While it is often more expensive to pay the contract up front it may be more financially beneficial in the long run.
Knowing what New Carriers will charge
Before leaving AT&T and consuming all the fees, find out what other carriers cost for monthly service, new phones, activation fees, and much more. Calculating is the only way to determine whether the switch is financially viable or not. A different carrier may mean that you will be charged more per month thus erasing any possible savings from leaving AT&T.
Weigh Your Options Carefully
Of course, it is quite feasible to switch to another company before you complete your contract with AT&T, as well as the payments on the phone, but the best thing to do is to assess all the expenses in detail. Besides the payout fees, the device balance, and the higher bills from a new carrier, you might be better off staying put. However, there are times when it would be logical to terminate the contract with AT&T early and pay the corresponding charges, at least then you know what is coming and make an informed decision regarding the use of mobile services.
Upgrade to faster, more reliable AT&T Fiber Internet today! Call us at +1 844-905-5002 and get connected with speeds that keep you ahead.