Cell phone plan deciphering

Asked April 14, 2015, 7:28 AM EDT

HELP! Comparing Verizon's basic 2 yr contract with their new Edge program 1. I do not plan to upgrade my phone soon, I always keep them for years, they have offered me a free iPhone ($200 rebate) with the traditional 2 yr contract or $200 of the full retail price of the iPhone $649 with the Edge program which would include a $25 discount every month, you would have to make payments for 18 to 24 months and then the phone is yours under the Edge. They claim the Edge is more cost effective for me. I'm a senior citizen and this is confusing me.

Suffolk County Massachusetts personal finance

1 Response

What they are telling you, from your description looks like this:

a) They can give you a free phone and resign you up for a new contract with their service. There will be no cost to you for the phone, but you will have a contract with them for the next two years.

b) If they sign you up for their EDGE program, they can help you get a higher end phone with a new contract which gives you a reduction in your monthly costs of $25 per month. $649 - 200 = $449 out of pocket. $25 per month for the full 24 months = $600. In this case, you would be ahead $150 at the end of the two year period.

So simply put, this could be the better deal of the two. A couple of additional thoughts for you. If you are not interested in changing phones, you can continue with them 'out of contract'. This will allow you the ability to change phone companies at any moment should you elect to. When you are ready to change phones, you may not be given any options on 'deals' for new phones.

As well, ask for information about the contracts offered with each of the two options. What are the differences in the contracts? You may even want to ask their customer service person to review your account to determine if there would be a better rate for you to be on, considering your use of texting, minutes and/or data service.