Are Cell Phone Payment Plans Considered Debt?

[@MaGaTOW69]

Thanks to Dave, I sold my IPhone and now use 2 cups and a piece of string.

[@Dev4467]

🤣🤣🤣

[@ericaford1454]

Beautiful 😂😂

[@shaylasenpai95]

😂😂😂😭😭

[@waughstreetglass5202]

@Andrew H add the 1 ply toilet paper and now we're really saving money!

[@DistrustingToaster]

Did you pay for the cups outright?

[@chrisrush3513]

When you’ve watched so many of these videos that you can read the title and know what Dave will say......

[@colin1818]

Agreed. You usually even know the jokes and sayings Dave is going to use - because he reuses them over and over. I went through FPU in 2007 and the jokes were all the same even back then! - "Sell so much stuff the kids think they're next" - "American Distress, Discover Freedom....." - "I drove that car for 10 years one three month period" - "Back when you were driving a 1902 Pinto" - "Rice and beans, beans and rice"

[@MrKijana23]

@@colin1818 sell the dog in ebay, put the cats on Craigslist... Chase this... Capital one: What's in your wallet? Money!!

[@ViviansLog]

Hahahah so true!

[@carstuff4u942]

That’s the rub, right? I’m surprised that he even has a talk show anymore. Just read his darn book.

[@colin1818]

@@carstuff4u942 - There's a reason that rock bands are still touring and playing the material they wrote 50 years ago. Even if you know all the words by heart, people still enjoy hearing it.

[@bigruss4331]

If you can't pay for them outright, then payments are debt.

[@itsallbusiness3784]

100% true

[@MCFC248]

No it's not. Debt from an accounting standpoint is a financial obligation you CANNOT pay off and are liable to pay them. A cell phone plan is not that. You can cancel and pay a fee. You can't cancel a loan and pay a small fee. They're both liabilities meaning you have to pay it, but it's not normal 'debt' the way people use the term. It's semantics.

[@CheesyNoodlez]

Rivaldo16M The question was about the financed phones. Not the actual plan itself. That is a debt.

[@tonyunderwood9438]

@@MCFC248 I think you're mis-understanding what's going on. If you sign a cell phone contract, you are more correct. It's still a financial obligation, but there are contractual outs where you can pay a fee or whatever to get out of it. However, even in that situation you still are financially obligated which is kind of the definition of "debt". With this particular caller, he's not talking about his plan itself he's talking about the cellphone itself that he financed with AT&T. In that case he bought a $600 cellphone and is making payments on the cellphone through AT&T. If he cancels his contract or stops paying they will come after him for the remainder of the $600 that's unpaid. It is 100% a debt in every sense of the word. If we extrapolated on your definition of debt it could be argued that a car lease isn't debt because you can pay a fee and get out of it at any time.

[@TheeSamuelNelson]

Well.. you can never pay for cell phone service without making payments

[@TheBlazemeister]

Every time I’ve financed a phone it’s always been at 0% interest. Debt is still debt though no question about that. People wouldn’t be buying nearly as many $1000+ phones if they had to pay for it all at once.

[@mattworkman1583]

Anyone who offers 0% interest is counting on a large portion of their customers to miss a payment. If you read the fine print of the financing agreement, there is usually a large penalty to being late on even 1 payment. Take RoomsToGo for instance, they offer 0% financing, but if the total amount isn't paid off in 4 years or if you are late on a single payment, you then owe interest at a high percent for the full amount backdated to the original purchase date.

[@RoastBeefSandwich]

It's not 0% really, the plans are more expensive to cover the finance charges silently. Prepaid and plans like Sprint Kickstart are cheaper because they don't allow financed phones.

[@RoastBeefSandwich]

@Peter Skagen Peter they use the same networks as the big boys. Total Wireless uses Verizon's network for example, I pay $85 for three lines with 60GB of data. The only thing I give up versus Verizon is the ability to finance phones and international roaming.

[@RoastBeefSandwich]

@Peter Skagen you do miss out on roaming agreements, but that's mostly only an issue in limited areas of the country and only with some carriers. And as the cellular industry continues to consolidate it will be even less of an issue (Verizon purchasing Bluegrass wireless, sprint purchasing shentel). Considering the immense savings available it's a very worthwhile tradeoff.

[@ClearOutSamskaras]

People buy cell phones that cost $1000? Why?

[@MakeAMark1755]

Working for a phone store i can tell you 90 percent of people finance their phones. The average phone price is about 800 dollars i sell and the majority don't have the money to buy it outright but want to flex with their 1000 dollar phone. Even worst is a lot don't even have the $100 to even cover the taxes. These same people wonder why their bill is so high..

[@logdon17]

lol, and people wonder why they can't move up the financial ladder, they are focused on buying depreciating assets for the short term happy fix they need

[@randomvideosn0where]

@@logdon17 To an extent it is an incredible tool (depending on how you use it) but there are definite diminishing returns as you get into the newer/more expensive phones. I use a $150 phone I bought 5 years ago and while it's not as good as a modern phone by almost any metric, it is a landslide victory in the price category.

[@christopherrosas2738]

The funny thing is alot of the phone companies will talk you into financing it because it's only a few dollars a month...... I'd rather have a phone that is outright mine..... sure it may not be the latest and greatest, but it does what I need it to do and it's paid off

[@logdon17]

@@randomvideosn0where yea that is what i was saying, buy a phone for a couple hundred dollars that does almost everything and not make payments on something that costs close to a grand.

[@Phougi]

Woah woah your sticker says $41.67 why is it $120 today

[@medviation]

I'm debt free and getting close to becoming a millionaire. I love my Samsung Galaxy A10s that I bought for $130.

[@Derek8487]

People are nuts to spend $900 plus on cell phones IMO.

[@brillopower1492]

Hey! That's my phone too! Costco?

[@josephrodriguez4944]

@@brillopower1492 I sell them at Best Buy

[@MrKijana23]

Get it boy!! Love it!!

[@zybard01]

Same net worth here and the most I ever paid was $125 for a samsung J2 phone off Amazon. I make $80k+ and work with people making $25k/yr that have the $800-1,000 phones.

[@financiallift6185]

Pay it off and don't upgrade until absolutely needed. No one needs a 10 billion mega pixel phone to take just regular pictures.

[@lukefromtexas]

I keep my phones for four to five years. When I know it is year that I am going to upgrade, I start putting aside $100-150 per month in January so that by September (iPhone launch) I have enough to buy the phone, case, and screen protector with cash. I also do ATT prepaid plan for $300 per year, and I cannot finance a phone with that plan. It works well for me.

[@BillJ213]

Prepaid plans are the way to go! I used to pay $92 a month switched to prepaid for $35 a month, same data and all. Now it’s down to $25

[@abark]

I gave up trying to tell people I knew to use lower cost options like Cricket instead of ATT. They all whine about being broke and wanting to spend less but never will.

[@cardiac711]

👍

[@whitegoodman7465]

yup, im with telus in canada and their postpaid plans start at like 80 a month, no thanks. I pay 45, use to be 30 but i changed my plan for more data. Much better.

[@deewest1472]

$60 dollars unlimited cricket is not a bad way to go.

[@katienicholson5139]

When my husband and I went into US Cellular to ask about phone plans, we COULD buy the phone outright, but they would have added a fee that was equal or higher than the interest we would have paid. We walked out and ended up with a US Cellular prepaid plan from Walmart where you buy a cheap phone upfront and only pay for service every month.

[@honesdalectc3110]

Haha, I bought a new phone yesterday and people were suggesting to make payments. No way!

[@ma93256]

I have worked for 3 major carriers and sometimes there’s promotions were it’s cheaper if you finance, if you’re looking to buy outright it’s best you go elsewhere like amazon eBay, you can get a much better deal there or even target, Best Buy etc sometimes they’ll give you gift cards. In other words you will never get a deal if you buy outright at a major carrier store. I’ve always done this.

[@ma93256]

Tannypat S that’s awesome good stuff, debt free is a win but definitely gotta stay humble about it.

[@ZayingIt]

I work for Apple and a lot of people finance their phones. The ones that don’t almost always pay either with cash and/or debit card. I die inside a little every time someone finances their product 😩

[@ZayingIt]

Ryan Werner yup really hard, but most people agree with the principles; they just don’t follow them.

[@riotmakerzify]

is there interest on phone plans? if not why not finance

[@ZayingIt]

Jahseh N no there’s no interest on phone plans; it’s just that the whole point of being debt free is avoiding things that put us into debt; financing a phone does that.

[@certifiedlover2748]

@Pipe Dreamer word, I don’t understand if you want a new phone then save your money up for the phone so that you can buy it outright. It’s better you will only be paying for the service. Instead of the phone and service every month. But most people don’t have money for what they are buying.

[@robertbonds6680]

@@riotmakerzify illogical comment

[@nocoastoutdoors4793]

My wife had to get a new phone recently. We were in the AT&T store, and they no longer put prices on anything in the store. By having no prices listed, you have to ask the sales guy, who can then talk to you in terms of $36/mo vs $19/mo rather than $1,300 vs $500. Such a blatant scam. He was also taken aback that were going to pay the full value upfront. I would bet 80%+ of people are doing the monthly payments. And again, they're buying premium phones over $1,000 that they don't need and wouldn't buy if they were paying upfront. But when put in the terms of being an extra $10 or $15 a month rather than an extra $500 or $700, they're indulging. Awful sales tactic.

[@marlenerodriguez1221]

That’s exactly what I told my husband. Debt is debt.

[@EMo-rx7pm]

How weird would "paying off a phone" sound 30 years ago?

[@ronyalemerrill]

Exactly!

[@hothotheat3000]

Treat phones the same way that you treat cars. I kept my flip phone until five years ago, when I absolutely had to go to a smartphone for work purposes. Since then, I upgraded once because the old iPhone was no longer compatible with the new operating systems. Hold onto it until it is no longer functional, not until it’s no longer fashionable.

[@ihadtotaketheredpill]

I agree. Thats why I like Iphones. They will keep receiving updates for 5-6 years. I dont mind spending $800 dollars for an iphone every 5-6 years. I dont like buying android as I have all of my photos and data on my iPhone. I also make $14k a year as a part time student. Many people may say im crazy for spending that much on a phone but I use it as a tool to help me learn new things. Other phones are just too slow for me

[@justonemori]

Iphone SE is $400 and $450 with more memory. If you want in the game but don't care about having the best model it's a heck of a deal. It's still a really good device. Samsung has models cheaper than the S line too. When you buy a phone that's not locked to a carrier you can do month to month and jump providers when your bill increases or a cheaper competitor comes along.

[@ariantabibian2616]

Dave is the MAN!! Because of him I got out of my comfort zone and have shared my Ecommerce experience and financial journey online and would love any feedback/support! Cheers and wishing you guys the best!

[@majakrolsbeautychannel8701]

Will definitely watch your channel and tell you what I think!

[@buildecommerce3643]

Checked it out! Love the content would just say better audio

[@stevee8318]

Some people finance everything - phone, tv, furniture, computers, etc and then put it on a credit card (effectively paying interest twice).

[@Retiredmco]

The service bill is not debt! But if the phone is financed that's a debt!!

[@izziereal2010]

That's exactly right.

[@born2win259]

Agree with that

[@Retiredmco]

@Big Bubba To be clear you say the monthly cell phone service bill is debt??

[@wittyusername9544]

Guess who? Yes when you receive your monthly bill it is debt. Because you owe them money. If you don’t pay the monthly bill, they will call debt collectors eventually. The Billings of the future don’t count as debt because they haven’t been billed yet.

[@Retiredmco]

@@wittyusername9544 Ok using your stated logic. Your car, renters or homeowners insurance, health and medical insurance is a debt too!

[@liamwelsh5565]

The reason they integrate it into the service is so that it's harder to find out how much more your paying for the phone compared to just buying it outright.

[@wealthyintime1]

I was in a Rogers store up here in Canada a few years back. A 50ish old woman came in and wanted to buy new iPhone. The sales representive was doing everything possible to try to convince here to go on a contract without buying phone upfront. An argument started and the customer turned around fuming. A manager of the cell phone come whispers to the sales representative, "just let her buy the phone. You did your best trying to convince her and she is not willing to even consider what you are trying to do."

[@jdb2002]

I financed my first two smartphones, paid over the two years of my plan, the payments added to my phone bill. But after I found Dave, I'm paying for any new phones outright.

[@David-cm4ok]

I'll be doing that too. I wasn't sure if they could be considered a bill, just the same as your gas or electricity or whatever?

[@jimmyboy1582]

Yeah i just go to Apple and buy my phone outright bo worrying about unlock after I paid for it, no tying me a network.

[@rthilson]

And then you paid more for the actual service or signed a contract

[@SidewaysEightSix]

Beware! Go straight to Apple. AT&T won’t allow you to buy the iphone outright.

[@euenfheiejrj]

SidewaysEightSix really? I don’t have att but I bought my iPhones outright for Verizon and Tmobile

[@Eltartaro_2050]

4 lines $120 everything unlimited and Amazon Prime inluded and 15GB hotspots for each line with metrobyTmobile. All phones paid outright.

[@ngb802]

Dave doesn’t care about 0% financing , he says buy things outright , and have an emergency and don’t use a credit card

[@fredericktaylor367]

I think 0% financing is a good idea if you need because it frees up more money that u could use to make more

[@mosharafkhan3027]

@Austin Duke well said

[@justshady]

0% sounds great until you end up with cellphones, OLED tv, laptops and cars you don't need. That's where they get you.

[@ngb802]

I understand that maybe not everyone can buy it out right , I mean it’s almost 600 to over 1000 for a new phone , I just don’t like having a higher monthly bill , and the funny thing is they use to have 2 year contracts, now it just seems like you pay the cost of the phone for 2 years and if u cancelled you account / plan you have to pay the whole amount of the phone anyway. i know Dave likes to buy things outright , wish he could show us how to do that for a house

[@justshady]

@@ngb802 99% of the population can't pay for a house outright, so the mortgage is acceptable. The reason cell phones are expensive is because people are willing to finance them into their bills. $1000 for a device that makes phone calls is crazy, but for $29.99 a month sounds less crazy plus you're going to be stuck at that carrier for at least 2 years. Most likely you'll buy all the perks and bring your family over. Source: I work for a telecommunications company.

[@High5748]

It doesn't make sense to buy a new cellphone every year especially since they go up in price every year. It's kinda sick because they'll get you finance then once your yr up they'll sell you a more expensive phone that's slightly different and get you finance that one. So it's a never ending debt....

[@BoarPlaysGames]

A phone payment plan is just like any other payment plan, it's a debt for something. Treat it just like any other small debt and put it first in your debt snowball.

[@andrewohlwiler2727]

Are utilities debt...

[@BoarPlaysGames]

Andrew Ohlwiler Utilities are Expenses. Phone service bills are also expenses, but owing on the actual phone is debt.

[@andrewohlwiler2727]

So it is looked at different one thousand dollar payment or two 500 dollar payments?

[@BoarPlaysGames]

Big Bubba Utilities are expenses, just like groceries, insurance, fuel etc. They are an expense that is due monthly based upon use, but if you pay off your utility for the month and disconnect service you’ll never have to pay them again. All publicly traded companies will show utilities as expenses.

[@ImVeryBrad]

When ever I get a new phone I always get older models that don't cost anything. I could pay $140 a month for the newest thing out. Or go back 2 models and pay $80

[@MelvinStokesMcCarthanJr]

Just Paid My Phone Off. Thank you Dave and the Ramsey Team!! Baby Step 3!!

[@jcarlson2727]

blows my mind that people finance relatively inexpensive items like cell phones...

[@crosseyedgangster]

Whoever made this call if you see this, pay off both phones switch to a prepaid plan for way cheaper

[@HaywoodHomestead]

Will you please change your profile pic, I just started blowing at my phone thinking it was a hair. 😁😁

[@jackiem9460]

That's what I'm saying! I pay $30/month with Cricket, live in a rural area, and have no problems.

[@dannyboy7825]

@@jackiem9460 Very Very true my sister. I'm with cricket too. You can go in a lions den and still have reception.

[@ShadowStormOG]

Thanks for this video Dave just paid off both my fiancés iPhone and mine.

[@JustMe-dn9fh]

Financing a phone is down right insane!! When an electronic cost as much as a mortgage or rent payment, and you finance it.. it means you can't afford it!!

[@JerryGonzalez]

People always look at us sideways when we explain that we buy phones outright. Never even crossed their minds to do that.

[@SubZero_NH3]

Wow! Never thought that through. I paid my phones off as soon as the video was over.

[@reneea7811]

You Rock Jake! Knowledge is power!

[@teng029]

this is the problem with people wanting the newest cell phone all the time. it's very easy to buy a cell phone to the point that most people i've seen complaining about being buried in debt still manage to carry the latest iPhone or Android phone. Buy one in cash outright and you'll find out pretty quickly how badly you really want that new and shiny object.

[@toddainsworth642]

If you are "given" a phone because of the contract you are on, you are still financing the phone it is just not a line item.

[@Plutonianextract]

Former cell phone salesman here. BEWARE OF HIDDEN LEASES ON YOUR DEVICE! Sometimes employees will get incentive to make customers lease their phone instead of buying it. I won’t go into all the things that make this a stupid idea, just make sure anything you sign does not say lease on it.

[@roxannesantos8918]

I got my phone preowned from target's website. Then i logged on to my carrier website and put in my new phones info. No salesman involved. Easy

[@aileencrane7700]

Yep. A payment plan for a phone is, but paying for the service and data is not. Pay off the phones.

[@whysoblutube]

If you don’t pay full price for it outright, they work the price of the phone into your bill - it turns into a 2-year lease contract.

[@jade4897]

Pay off phones and switch providers to a cheaper option. I was At&t for 7 years..switched to Wing with the same perks and cut my bill in half.

[@JT-lq4yd]

Short story, back in 2015 I leased a phone, it was $20 for 18 months. However, the electronics store had a promotion where a $19 credit was issued to my account. After the promotion was over, I paid the phone company $18 to own the device and used it a total of 4 years. You have no idea of how much remorse I feel for not thinking about paying in full back then. You have to see down the road for what is better and decide accordingly.

[@hamzagayurzoda6344]

If you have AT&T, pay off your phones and switch to cricket wireless. Same service, same network but only 50/month for unlimited and 80/month for two lines and 100/month for 4. I used to sell phones and I don’t see any reason why somebody would pay higher amount to a bigger company when there is a smaller prepaid one on the same network that’s cheaper 3-4 times

[@billsandrew]

I like Wing. They use AT&T towers and I can pick a low data plan and if you exceed it, you just bump yourself to a higher plan for the month. So for someone like me who rarely uses much data, I only need to pay for more data when I actually need it. I pay $22/mo most months.

[@stephenharris2495]

Ok, so our ATT plan is 0% interest, my wife’s phone is essentially being paid for as well go through the promotion while mine is not. We would lose out in the promotion discount by paying it off = cost more money. I’m not sure I’m with Dave on this. They literally take cost of phone and divide by X months. We would have lost out on $600 if we had bought the phone outright.

[@peterschmid2918]

I think that Dave has to air on the side of oversimplifying things. The simple truth is that most people don't need a phone that is so much money that it makes sense to finance. When a person is drowning in debt, they honestly should be purchasing a used phone and putting it on the cheapest prepaid plan available ( there are plans that have some data starting at 15 per mo) Until they are back in control of their finances. ATT can offer you a buy one get one promotion because the monthly cost associated with your phone plan allows them to recoup their loss inside of that 24 mos. When you start to look at the picture as a whole i.e $20 over 2 years with $200 out of pocket vs lets say $60 over two years with $100 out of pocket, you start to see a different picture altogether

[@cesarbahena8625]

There's always a buy phone and a get phone. You get monthly credits for the get phone which you can not pay off because you would be losing out on the monthly credit. However you can pay off the buy phone.

[@earlsweat9727]

You’re right, actually. I don’t agree with Dave here neither but it’s also not his fault he doesn’t account for early termination fees or not accounting for promos (the caller didn’t say). I do agree with Dave partially though: don’t finance a cell phone. After the contracts end and you plan to buy another phone: find a phone on sale and buy it out right.

[@One-12937]

How many discover points do you have bro?

[@stephenharris2495]

Big Bubba if the phone is $1200 and you are getting 1/2 paid off monthly, that equals $600. Also 0% interest. Will it make me a millionaire? Nope, will it save me $600? Yup.

[@stacycreates24]

I bought my phone straight out, and use Mint mobile-where I pay yearly for their service

[@fmaz1952]

People like having cellphones that are crazy overkill for their need. Oh your phone has 4 camera, can play 3D VR games! Sweet! Those features you never use just cost you an extra 600$.

[@TromboneLoki]

Bought my phone unlocked, on sale and have saved so much over the past year

[@Montblanc1986]

everyone calling in has a phone loan they forget about, having a 100 dollar phone bill every month is another hole in the canoe

[@TeKnoVKNG23]

@Rawkfist1501 Try to cancel a cell plan early and see all the buy out fees you have to pay. Most of those $100 phone plans have the cost of the phone added in as a monthly charge.

[@dthomas7931]

TeKnoVKNG23 there aren’t “all those buyout fees” if you cancel a phone; the only fees you owe are either the ETF if you’re on a contract, or the balance left on the phone, which is the same as if you’d bought it outright.

[@neonpaintsplash]

JoeAceJR, hows that service? I’m genuinely curious.

[@codorin]

@@IJoeAceJRI you would be surprised in Canada. most palns are near $100/month or more. we have the highest celluar service costs.

[@ShakespeareCafe]

I have ATT Unlimited 100gb and 30gb hotspot before they throttle down the speed Worth every penny I watch Dave

[@iamthomashunter]

I don't know of any phone company that charges interest, and financing phones now is FAR more transparent than the "2 year contracts" of old. Cancel service with phone payment-you owe the remainder of your phone payment. Cancel service on contract- what do you owe? No one knows. The 2 year contract was not transparent.

[@AH-up8zh]

Unfortunately it costs more for the phone to pay for it upfront... They "force you" into financing it monthly for $10/ month over 2 years vs paying $500 upfront... It's a complete joke!

[@Christyy333]

No they don’t lol

[@AH-up8zh]

@Dr. Johnny Sins we are with Verizon... Each carrier does it differently unfortunately

[@euenfheiejrj]

That’s not true. It’s the same price to pay it upfront vs monthly. I’ve bought it full price through Verizon and now tmobile and never paid more...

[@collinpylar1231]

My dad just picked up a new phone from T-Mobile and they have an “upgrade fee” all I heard was “we charge you to buy something from us” and I told him to go to Apple instead

[@izziereal2010]

Avoid contracts for cell phone services. No company will give you discounts without them recuperating the loss from it or other promos. Also, if the service is subpar, or you move to a different area with horrible service, you're on the hook with the company. Prepaid is the better option, and for goodness sake, pay cash for the phone. I bought my LG G8 on Amazon Renewed for $215 and it's a great phone.

[@alexsbikesandmotors]

I bought a used phone on ebay for $45. Had it 2 years. It works fine.

[@Simon-oy7kf]

Over 200 a month for a smartphone???? You can buy a full smartphone for that, and then buy some prepaid stuff instead of a monthly bill

[@XX-ce5tv]

I have Mint mobile and I literally paid $240 for one year or 12 months. I get a 8 GB a month. Just buy an any Android, there's no need to buy from retailers, just simply do research and get best phone for your needs. It doesn't have to be a phone of the year or new. Todays tech is barely no different from two or three years ago. You can get Galaxy S8 for less than $300 and still compete performance wise with new phones!

[@chazlyle41]

But least expensive option in stock, keep for as many years as possible until it’s absolutely not usable anymore, repeat.

[@donnabennett5454]

Switch to prepaid phone plans and buy the phones outright and unlocked to use on any carrier. You save thousands. When you finance a phone, not only is the cost per month added to a plan, but, you also have to choose the most expensive plan to qualify for that phone. If you think I'm wrong, look at the so-called "deals" on phones. They specifically state "with a qualifying plan". Translated, that means, the expensive plan.

[@2dwc]

Just paid the remaining balance of my phone after watching this.

[@reneea7811]

You Rock David!!! Knowledge is power!

[@teev7]

That’s awesome!

[@LG123ABC]

One thing I've always wondered is if a one-year lease on an apartment is considered debt. I mean, you're signing an agreement to make 12 monthly payments and I'm pretty sure they can sue you for the total amount of the lease if you break it. If it is debt, should I prepay my lease so that it's "paid off" before the rent is due? I don't think I've ever heard Dave address this.

[@SmoothJK]

My guess is he would treat it like a mortgage, meaning it is separate from Baby Step 2. You need a place to live, you don't need a credit card (or other debt).

[@peterschmid2918]

All you need is 20,000 up front Lyle, this is practical stuff!

[@---cr8nw]

Debt is money you owe for goods and services you have already received. For example, medical bills are debt. The copay that you pay at the time of service is an expense. A monthly utility bill is an expense. An overdue utility bill is debt.

[@c_xela]

I don't know if it's still like this today, but it used to be that they'd give you a better deal if you agreed to finance a phone instead of buying it outright... Probably to force you to use their service for the full 2 years.

[@mariorta5017]

I just went to AT&T few days ago. I got into an argument with the seller. He didn't want me to pay the full amount of the phone because they are a service store, which was not making sense to me since they sell phones. So after arguing back and forth, he changed the answer and said I can give a deposit, now I have to get back to the store in 15 days to pay my $40 dollars balance. I know most people dont like to question, but I questioned this guy until he got tired of me and gave the answer that I was looking for and I just wanted to pay the full amount of the new phone 🤷‍♀️. I was just following papa Dave's advice.

[@flisfinance5680]

People are really worried about what is debt and what is not! As long as you are on a steady track to grow you shouldn’t need to take out debt. Also they should just buy the phone outright and not do payment plans

[@DogCatpets792]

That look on both their faces at 1:10 wahahhahahaha

[@ASwagPecan]

This video made me pay off my phone instantly; Last time I bought a phone I paid it instantly in full but this time around it slipped my mind. Only had $200-ish left so definitely late to the party but better than never.

[@MarcG7424]

I usually buy my phone refurbished unlocked outright and 2 or 3 models behind the current model and use them for at least another 3 years working out great so far

[@halvey8518]

You want to buy a new phone? Buy it outright and not from your provider but from the actual company itself. I got my iPhone 15% off that way

[@austinpatrick2682]

I've been doing prepaid and buying $100 phones for years now. My phone bill is my second smallest bill next to my water bill. I'll never go back to latest model phones and payment plans ever again. We are living in a time where years old technology is still awesome technology. Most of us don't NEED current model phones anymore unless you work in the tech industry or do work that's dependant on being on the cutting edge.

[@richardcorrea7365]

If its 0% interest it shouldn't be a priority to get paid off. If he paid an extra 680 towards his mortgage, he would save a lot more money in interest over 15 years than he would paying off a 0% interest phone. People demonize buying phones because they say its unnecessary,, but you need them and doing it in installments can save you money. For example, I work for a cell phone company and if you do the iPhone 11 Pro in installments with a trade in you get it for $300, as long as you pay in installments. So if you buy cash, you just paid an extra $700 because you didn't want to have "debt." My advice, find a good promo, keep it and don't upgrade and when it gets old wait for another really good promo

[@josephrodriguez4944]

Sprint and T Mobile offers a plan on a single line for under 45 dollars a month. I was paying $85 before on a single line. Just go prepaid on big cell phone companies and it will give you great service while you save money.

[@akui88]

if you need to make payments on a phone, reconsider your life and what you need.

[@Maxz4115]

I found out a month ago if you have Xfinity internet you can get xfinity phone service. They advertise it as exfinity but they really use Verizon network (thats what the rep told me) I went from paying 105 monthly for a single line, full paid off phone and unlimited data with AT&T and now I pay $45 for unlimited data and service with xfinity. I pay an additional 11 bucks to Best buy for my phone protection plan. So I pay total of $56 bucks a month as opposed to 105.

[@Ghost-jy9hk]

Me too! I switched from Verizon when I was paying hundreds a month to Xfinity mobile where me and my wife are on the 10 GB plan for $60 a month. Killer deal

[@Maxz4115]

@Big Bubba I agree but am so afraid of some thing going wrong with my phone and having to get a new one cash . phones are expensive 600plus a piece if you buy it outright. My phone is all paid for and I would have to pay full price to replace it and this has happened many times in the past. so that's is why I hang to protection plan

[@trumayne2010]

Now that I'm financially set I'm buying my phone's straight cash, then right on a prepaid plan no more contracts

[@chrispaschall5507]

I got one on swappa earlier this year. Never used and got it for almost half as much as buying it directly from Verizon. I just made sure that the phone model would work with my carrier and took the SIM card from my old phone and put it in the new one.

[@LG123ABC]

I paid 90 bucks for a refurbished Android phone at Wal-mart and signed up for Straight-talk with no contract. It seems to have worked out pretty well.

[@SmnthaNcole]

Phone payments are debt, but there is no interest. I worked for AT&T and Verizon and neither charge interest. I can’t speak for whatever company the wife went through, though.

[@erickabundis7952]

Dr. Johnny Sins exactly

[@prospersis4540]

I think he wanted to know which to pay off first. He knows he needs to pay both but one is included in a monthly bill and one is just another set amount. I would clear the set amount debt first then start working to pay off the cell phones.

[@lineinthesandministries7873]

There is never interest on ATT or Verizon’s payments. A better question though is if we should “finance” the phone (no interest or fees for doing so) if they charge you $33.34 for the phone and then credit you 33:34 a month as a credit (promotion)? Promotional phone!

[@lauras627]

I paid my cell phone balance (for phones not service) to reduce my monthly cell phone bill from 280 to 200 (5 lines). Now I’m moving to pay off my credit card.

[@aaronalba5752]

Honestly it is I did it once and never again used to pay 100.00 a month which easily over two years makes the phone purchase amount to roughly 4 grand now I have a 20 dollar phone plan with an iPhone X and I’m happy.

[@Scoobydoopapa1]

I bought the new iPhone SE for $200 from boost mobile and my husband still has an iPhone 6s that we bought for $99. Our monthly bill combined is $60 total for unlimited. It would normally be $70 but we save $10/month because we’re on a 2 person family plan. I used to upgrade to the new iPhone every year and my bill was $80 with sprint, and I never got to own the phone. Idk how people can pay hundreds of dollars a month for a phone that they don’t even own.

[@riverdaletales8457]

Because their stupid.

[@certifiedlover2748]

Because they want to keep with jones, the want to look like they have money even though they don’t. Like people are out here flexing a phone that you don’t even own😂

[@CarolBennettGA]

We have two LG android cell phones. Prepaid AT&T ones. Got them during black friday for $30 each. That's it. Normally $60 each. Been using them for years.

[@txdoodlebug]

My phones are on their payment plan. All four of them for our family. The service and overall total cost is cheaper that way. There is no interest and even more options to upgrade the phone when doing it this way vs buying it outright. We are debt free including our house and I could write a check right now to pay for 100 years of the phone bill. If you are using this method to get a phone you can’t afford then yeah it is probably a bad idea but it is a better and cheaper way (in total cost) to have a phone vs just writing a check for one. We get new phones every couple of years. Why? Because we like them and we lived like no else so we can live like no one else now. If you want a new phone every couple of years their plan is the most cost effective way to do it.

[@minecraftvideo2547]

I would say so and a phone is only like $500. I never financed one. If you can't buy a phone out right you really need to make some changes

[@randomactsofriding4850]

Go to boost mobile buy whatever iPhone they have on sale for 50-what you can afford and have no contract yes a phone contract or plan to pay off is debt. You can have unlimited everything for 50-60 a month You can also switch plans or stop paying at anytime without buying out of your contract

[@bigd3721]

Funny how at the end of the two year plan, your phone starts to mess up

[@happygirl7258]

Always!

[@Zeus0886]

Dont update your phone software

[@daisyfabian]

So true 😂

[@b__w_4565]

Gotta love apple!!!

[@Bigboytravel]

My current TMobile phone i could have paid full price minus a trade-in or get the trade in plus and extra 25% by paying the phone off monthly via a bill credit. Was 25% cheaper to do the plan which is because they want you to get used to the monthly cost to always upgrade instead of letting the charge fall off when the phone is paid off. Do whatever is cheaper but if it is monthly then have self restraint

[@RoastBeefSandwich]

Prepaid service and pay for your phones in full. Save $50+ more every month with no loss in coverage or service.

[@user-qm9oo2fd2o]

I’m missing something here. I’ve never paid interest on any cell phone I’ve ever added to my plan. An $800 phone is $33.33 per month for two years, that’s $800. Call me weird but using someone’s else’s money for two years? Why not?

[@---cr8nw]

That was my thought. As long as there's no interest, you're actually coming out a little bit ahead by paying it over 2 years. The rate of inflation doesn't apply to a product that you've already bought.

[@carstuff4u942]

Agreed !

[@miriam1449]

I think it depends on your carrier. When I was with Verizon’s (back in 2011-2012) I paid $95 monthly for unlimited talk and text and very limited data. With straight talk I pay $45 monthly for unlimited talk and text and 25G of high speed data. I don’t know how carriers are now but given my above figures, I saved $4,800 in 8 years and a bit more because I switch to the $35 plan when I was getting out of debt.

[@raiden031]

As Dave always says, you're not solving a math problem, it's a behavioral problem. First, you might not buy a phone so expensive if you have to pay upfront. And second, you may not make other purchases that you don't need after forking out several hundred dollars for a new phone.

[@Talkinglife]

Don't do a payment plan for your phone. Steer clear of rolling the cost of a brand-new phone into your wireless bill. You'd just be making payments on a new phone (yeah, that counts as debt) all while it hikes up your phone bill even more.

[@susantam9949]

I’m going to pay off my phone debt too in my next paycheck. It’ll definitely lower my bill.

[@enigmathegrayman2953]

Go to Best Buy and buy the phone outright and get the SIM card for whoever you carrier is.

[@PC-ch1md]

I purchased a phone outright then I use Tracfone using my purchased phone. I bought 1200 mins 1200 texts and 1200 data good for one year for $99.00. I seldom use data because I’m always where theres WiFi. If I call my friends and family I use FaceTime or messenger or viber using WiFi. In conclusion, I don’t have any cellphone bills monthly and I hardly use up my minutes, data and texts

[@EdgarHernandez-xj5mx]

Typically there is not interest on cell phones and the service provider makes no profit on the sale of the phone. They just make profit on your service plan or any accessories you get

[@rogercarver301]

My phone financed over two years with Verizon has a retail value of $750. The phone is discounted each month with credits. The amount I'll actually pay for the phone will be $450. To pay for it outright would have cost me $300 more. Weird scenario where it "pays" to take the financed offer. (Exception. Not the rule.)

[@GeorgeAusters]

Yes... I just bought my iphone used and then I am on a sim card only contract (£17 per month)

[@energizeric8526]

Dave’s advise is for people who have no self control, so he has to get them to stop borrowing money at all costs. However, it is logical to borrow money at 0% any time you can. Even if you don’t need the money, you can always then put it in an interest earning investment or account and then earn extra money by doing nothing. Those cell phone finances through AT&T are at 0%. They simply divide up the exact cost of the phone by 24 months and add that to your bill for those 24 months.

[@DaMu24]

I don't agree with you. A phone priced above $1000 is as outrageous as a new car. The phones from 2015 still hold up, just get an older model and pay the couple hundred for it.

[@venchenzo4493]

It is borrowing, but its usually at 0 percent.

[@Cravz69]

I told Verizon that I wanted to pay outright for a new (but still somewhat outdated model) phone. They wouldn’t honor the $100.00 off discount unless the payments were spread over the life of the contract, how dumb is that. No interest on top of this either, so it doesn’t make sense if they’re not making any money off of it.

[@Cravz69]

Sir We Are About to Die That would make sense if that were the case, but it’s just the flat cost spread over 24 months. I don’t see how this benefits them.

[@kevinmanns6505]

This is their way of keeping you locked in with them for two years. They don’t make much money from the phones themselves. They make it from their services and related fees. With that being the case, they will gladly offer you 0% interest for 24 months and other additional discounts on the phone. And once you pay it off, they’re pushing you to get a new one. This is because it means you are committing to paying for their services (and your phone) for 24 months. If you try to switch service providers or go prepaid before you have paid the balance of the phone, you will be left owing them the entire balance of the phone without whatever discount on the phone they may have initially given you. Additionally, notice that phone service providers only offer the financing option with the postpaid service tiers, which are usually more expensive than the prepaid services they offer. So technically, you’re still paying them for the “privilege” of them financing your phone for you. A cheaper, refurbished, or used phone paid for in full on a prepaid plan is usually the least expensive option for the consumer.