To lure users to switch to the latest handsets available as quickly as possible, some providers in the UK are offering early upgrade plans. If you’ve been eyeing and desiring the newest smartphones, the deal seems irresistible. But there’s just one key question to ask, are the early upgrades worth it?
Before you jump and avail the early upgrade plan, it’s important to understand that such offers are attractive but also extremely complicated. Carriers like them to be complex because that’s how they make more money from customers.
So, what exactly is an early upgrade plan? Upgrade plans, in general, offer interest-free financing plans allowing you to avail of the latest iPhone for example by splitting the cost over a 24-month period. In other words, you will be paying an additional monthly charge on top of your monthly phone service fee to cover the cost of the phone.
If you decide to go through with the upgrade, your old phone is traded in exchange for the latest handset. Your old phone’s balances are wiped out and you start the payment cycle from the beginning.
If you think about it, the earlier you opt for an upgrade, the better the deals are. In fact, you’ll probably save some money that way if you’re really after the latest handsets. Some experts suggest upgrading every six months as opposed to getting a traditional 24-month plan. But at the same time, you need to remember that you trade phones with early upgrade plans.
While the savings sounds good enough, it doesn’t come through all the time. Because you’re trading your old phone when you upgrade, you might even end up losing some in the process. To make the upgrade worth it, you need to make sure that you know exactly what the terms are and the move is perfect for your budget and needs. Otherwise, forego the upgrade and stick with a traditional mobile phone contract plan.