5 Things you need to know before getting yourself a mobile phone contract

No doubt, the allure of getting a phone now and paying for it over a prolonged period of time might be irresistible. However, what you never stop to grapple is the fact that you will have to part with a substantial amount of money monthly for the duration of the contract. Have you factored this into your budget? How will paying for your contract monthly affect your finances? Well, these are some of the questions a person should ask prior to taking out a phone contract. That notwithstanding, what are some of the things you need to be familiar with prior to taking out a mobile phone contract?

Total cost calculation

Do not just enter into a contract blindly without knowing the total exact amount of money you will part with by the time the contract comes to an end. Calculate your total cost and know the exact amount you will pay at the end of the contract. If it helps, try and compare different providers before you make the final decision. Remember, you will be locked for say 12 to 24 months and you don’t want that period to be hell on earth.

What are the perks/benefits?

It would be foolhardy to pay through tooth and nail and not be in the know of what exactly you will be getting. What does the mobile phone come with? Are the set minutes, texts and data bundles in a month sufficient for you? Is there an option to upgrade a couple of months down the line? What about promotions every now and then. Understand what value you will be getting for your money before taking out a phone contract.

Haggle! Haggle! Haggle!

Most people are of the mindset that haggling only takes place at the market place. However, this is not true as haggling improves your chances of getting a better deal. In actuality, the deal put before you is not cast in stone. Even the mobile phone providers set prices and benefits with the expectation of negotiation. When you don't haggle, the provider wins. By haggling, you can get additional benefits or even have the total cost slightly reduced. Of course, you should never hesitate to dangle the loyalty card!

How much will you pay for cancellation?

Granted, there might come a time when you feel you’ve had enough or simply want to switch to a rival provider. How much will you be entitled to pay as cancellation fee? Know this upfront as you do not want surprises when the time comes and you find the cancellation fee exorbitant.

Read the fine print

In reality, most people find reading the fine print boring and a torturous undertaking. However, it is highly advisable to read it as it is the little things hidden in there that make our experience hellish. So, as boring as it might be, take the time to read and understand the terms and conditions prior to appending your signature on the dotted line.