Considering Cancelling your Mobile Phone Contract Early?

Considering cancelling your Mobile Phone Contract Early? 

As mobile phone contracts generally last around one to two years, you can easily need a change during that time but still be stuck in the contract.  If this does happen then you may start considering ending/cancelling your phone contract early.  However, it might be worth checking the other options that are available to you before you jump right into cancellation.  But if there is no other option apart from cancelling, these will help you avoid large termination fees.  Then there will also be a rundown of what will happen if you cancel your contract early.

Struggling to Pay for the Contract

Do you not have the money to support your current contract?  If you want to cancel your contract due to the fact you cannot afford the payments then you should try contacting the provider and you might be able to work out an alternative way of paying.  Unfortunately, if you just cancel your contract without paying your credit score/rating will drop as a result; therefore, it is probably worth seeking an alternative to cancelling.

If you are Going Abroad

So, you are moving to a different country and no longer require the phone contract you have at the moment.  This will almost certainty lead to cancelation fees as providers do not allow cancellation due to relocation.  Some providers will charge you up to 96% of the overall cost of the rest of your contract.  Thus, the best course of action may be to keep the contract going, which will allow you to use it if you ever come back to visit; since you might be paying a similar amount to cancel it as you will pay for the rest of the contract (depending on your provider).

Experiencing Bad Signal?

If the reason for you wanting to cancel your contract is the lack of signal you have on your phone.  If this is the case then you should be able to contract your provider and either receive compensation or be able to cancel your contract free of charge due to the lack of signal.  This depends on your provider and their terms and conditions.

Rundown of the Main Providers and Their Termination Fees

O2 only charges the line rental for the rest of the months left on the contract.  The O2 website uses the following example, if your tariff every month is £21.50 per month (£15.50 plus £6 per month for the All Rounder data bolt-on), the line rental of £15.50 is charged for the remaining months of the contract.  Which is a slight reduction but you are still paying around 72% of your overall contract cost.

-EE have a 14 day warranty in which you can cancel and only have to pay for the charges you have amounted to during the 14 day period.  However, if it is over 14 days then you are no longer covered and in order to cancel a contract you will have to pay for 96% of the remaining payment for the contract.

-Vodafone has a 30 day network guarantee which should allow you to cancel in the first 30 days and not be charged.  However, if you decide to cancel after that 30 day period then you will face a heavy cancellation fee.

-3 will charge you up to 97% of  your remaining contract expenses.

-BT mobile cancellation costs vary depending on the amount of data you have on your contract.  From just under £4 per remaining month to over £15; be sure to check their website if you are a BT customer to see how much you would be charged to cancel.

-If you happen to be a GiffGaff customer then you can cancel anytime for free.  They have no termination fee and if you have a phone from them you can continue paying monthly for that on a separate agreement.


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