Have you heard the news? Verizon and Sprint are joining T-Mobile in getting rid of two-year phone contracts. Along with that comes the end of the $199 smartphone.
Fall Rush Will be Different
It's a rite of fall: Apple releases a new iPhone, and the smartphone frenzy is on. For $199, millions of people upgrade their phones when the newest model comes out.
But that's about to change.
Most major carriers -- AT&T being the last holdout -- are ditching contracts and subsidized phones.
That means your next phone, if you want the latest model, will cost $600 or more.
What You Can Do
But don't panic. You'll be able to spread out the payments, paying about $25 a month at most carriers.
Verizon's website already has the new iPhone 6 listed at $27 a month, which would then be included in your monthly rate.
An analysis by Mouseprint.org says over the two year period "your cost will be roughly the same, maybe even a bit less."
Switching Carriers Will Still be Tricky
But from the "doesn't that stink" file: You still won't be able to switch carriers easily.
Want out of your deal in 6 months or a year? You'll have to pay the $650 price of your phone, instantly.
You'll say "doesn't that stink."
The good news is those dreaded early termination fees will finally be a thing of the past. They could hit you for $300 or more if you tried to end a contract before your 2 years were up (in many cases, it was to cover the cost of the phone).
So the bottom line: This change in plans is not a reason to panic, or drop your carrier.
Once you get used to the change, you'll look think two-year contracts are as outdated as a flip phone or mom's old dial phone.
So don't waste your money.
Don't Waste Your Money is a registered trademark of the EW Scripps Co.
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