Ask Sid: Taming Cellphone Contract Termination Fees - AARP Bulletin

Taming the Cellphone Termination Fee

Q. How can I get out of my cellphone contract without being socked with a huge early-termination fee? A. Those hefty cancellation fees—$175 per line for AT&T customers, $200 for Sprint and T-Mobile users and up to $350 for certain Verizon plans—prevent many cellular callers from leaving their contract-based plans for less expensive prepaid accounts. But because each company now prorates its penalty over the life of a two-year contract, you may owe much less if you’ve been signed up for a while. Your provider can provide the details. While you’ll likely pay some fee for breaking a contract, Ken McEldowney of says you may save in the long run. For instance, a $150 early termination fee could be paid off in about three months by switching from a contract costing $90 a month contract to a comparable unlimited prepaid plan costing $45 per month—with no contract needed. After that, you’d save $45 each month compared with your contract plan. There are also third-party services, such as TradeMyCellular, CellSwapper and CellTradeUSA that help cellular subscribers find someone willing to assume their contract. Figure on paying $20 for these services, and possibly the cost of one month’s service as an incentive for someone to assume your contract. Sid Kirchheimer writes about health and consumer issues. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

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