Zero down questions

[bg1287]

So I can get a Galaxy S5 for T-Mobile for 87 dollars a month with their zero down option. It says I have 2 years to pay it. the service itself is only 60 bucks.

So would I be able to make higher payments if I wanted so the phone is payed off quicker? If I put a 160 bucks on every now and then... it'd help obviously to pay it off quite quickly.

 

[DirtyDee]

So I can get a Galaxy S5 for T-Mobile for 87 dollars a month with their zero down option. It says I have 2 years to pay it. the service itself is only 60 bucks.

So would I be able to make higher payments if I wanted so the phone is payed off quicker? If I put a 160 bucks on every now and then... it'd help obviously to pay it off quite quickly.

its kinda like credit, yes you can pay more but still must pay every month till its paid off...but then again I am just guessing

 

[bg1287]

Oh yeah. I know it works like credit

I'd just like to possibly pay off the phone real quick so the payments aren't high any longer.

 

[kate]

So would I be able to make higher payments if I wanted so the phone is payed off quicker?

Copied from the T-Mobile website under their "Questions on shopping?" section:

Can I pay off my phone early? You may pay off the full cost of your phone (and any other devices included in your Equipment Installment Plan) early. If you do, you’ll enjoy monthly savings even sooner. To pay off your phone, you will need to call Customer Care or visit a T-Mobile retail store.

 

[mogelijk]

its kinda like credit, yes you can pay more but still must pay every month till its paid off...but then again I am just guessing

I'm sure T-Mobile would love for you to pay it off sooner. On the other side, I don't see the advantage to making larger payments since you aren't being charged interest.

 

[bg1287]

Well so that way I'm not paying almost 100 dollars a month!

 

[LuvMusic]

I'm sure T-Mobile would love for you to pay it off sooner. On the other side, I don't see the advantage to making larger payments since you aren't being charged interest.

There is one advantage to making larger payments....if you use JUMP. The benefit to "jump" without additional expense is based on you having 1/2 of your phones purchase price paid for. So, if you buy a phone for $600.00 and use the payment plan and JUMP, you would have to payoff $300.00 of the phone's purchase price before you could Jump without an additional charge.

So, if you like to upgrade your phone frequently, making additional payments to get to that "1/2 paid-off" point can save you some additional expense when upgrading your phone.

 

[LuvMusic]

Well so that way I'm not paying almost 100 dollars a month!

BTW....if your taxes are like mine, you will be paying $100.00 @ month.

 

[mogelijk]

There is one advantage to making larger payments....if you use JUMP. The benefit to "jump" without additional expense is based on you having 1/2 of your phones purchase price paid for. So, if you buy a phone for $600.00 and use the payment plan and JUMP, you would have to payoff $300.00 of the phone's purchase price before you could Jump without an additional charge.

So, if you like to upgrade your phone frequently, making additional payments to get to that "1/2 paid-off" point can save you some additional expense when upgrading your phone.

I considered that but typically you are going to be better off if you merely put the extra in a bank. Granted, most bank accounts aren't generating much interest, currently, but it does allow you to keep more of your money, yet have it on hand when you are ready to upgrade (to pay off half of your current phone). I'll also admit, it does require some amount of being able to manage your money.

 

[Gman9831]

The EIP isn't charged taxes on your bill you pay the taxes for it when you first get the phone. When I got my Note 3 it was around $50 in tax I payed.

 

[LuvMusic]

The EIP isn't charged taxes on your bill you pay the taxes for it when you first get the phone. When I got my Note 3 it was around $50 in tax I payed.

This is true...I paid the tax on my handset when I purchased it. I pay about $15.00 a month in other taxes. FL is more tax friendly than the Cook County / Chicago area.

 

[Bodycount]

Why would you pay off a zero percent interest loan early?

Seriously? Do you know anything about money?

If you have extra money left over that you want to use to pay off the phone, instead put it in a savings account and don't touch it. At least it will get some interest off it instead of giving free interest to T-Mobile since they have your money and is doing the same.

That way if you're ever short a month and your phone bill is due, take some money from your savings account.

My Note 3 is 0%, $26 a month EIP (got it on sale for $625 in December because T-Mobile's system crashed). I have 6 months paid on it with 18 months left. You better believe I'm only paying $26 a month for it and no more.

 

[LuvMusic]

Why would you pay off a zero percent interest loan early?

Seriously? Do you know anything about money?

That's kind of harsh......

And seriously, there are advantages to paying-off early.

1. It returns the payment amount to your cash-flow earlier so you can use it for something else.

2. It strengthens the financial relationship with the lender.

3. Credit rating agencies like seeing behavior like early pay-offs so it boosts your credit score.

4. Some of us like to be debt-free.

 

[sreum]

So I can get a Galaxy S5 for T-Mobile for 87 dollars a month with their zero down option. It says I have 2 years to pay it. the service itself is only 60 bucks.

So would I be able to make higher payments if I wanted so the phone is payed off quicker? If I put a 160 bucks on every now and then... it'd help obviously to pay it off quite quickly.

Yes you are right.
But like another person mention you will have to pay your monthly bill plus the 87 every month until the phone is paid off.
Tmobile system takes the extra money you paid and applies it to the last month's payment, not the next months payment.

 

[Bodycount]

1. It returns the payment amount to your cash-flow earlier so you can use it for something else.

The extra money can go into a savings account thus generating interest. You can effectively "use it for something else" now instead of later.

2. It strengthens the financial relationship with the lender.

if you're getting 0%, your relationship is already as good as it's going to get.

3. Credit rating agencies like seeing behavior like early pay-offs so it boosts your credit score.

My 0% loan through t-mobile isn't being reported to any of the big three credit agencies. I checked.

4. Some of us like to be debt-free.

Ok so you like to be debt free. Do you also like giving away free money to T-Mobile? Because that is what you're doing.


Seriously if you like seeing the smaller phone bill then I suggest putting whatever the phone costs into a savings account and set up automatic payments a couple days before the due date. Say your phone EIP payment is $20 a month, set it up through T-Mobile to withdraw $20 a month from that savings account. Then pay your normal bill (minus $20) like you normally do. It would be like having your EIP paid off but the money in your savings account over two years will have given you extra money.