So you‘re cruising along, making your monthly Verizon phone payments like clockwork. But suddenly, you find yourself wondering: what would happen if I just paid this thing off early? Could it save me money in the long run? Give me more freedom to switch devices?
Well wonder no more, because as a consumer expert and meticulous researcher, I‘ve compiled the ultimate guide to paying off your Verizon phone ahead of schedule. By the time you‘re done reading, you‘ll know the process inside and out, and be equipped to make the savviest choice for your wallet and lifestyle.
The Basics: How Early Payoff Works
First, let‘s cover the fundamentals of how paying off your Verizon phone early actually works. According to Verizon‘s official device payment policy:
"You can pay off your device early by making a one-time payment for the remaining balance on your device. You can do this at any time after you‘ve made your first 30-day payment."
In other words, you‘re free to pay off the rest of your phone balance in one fell swoop, as long as you‘ve made at least one regular monthly payment (which is typically required 30-60 days after purchase).
There are a few ways to actually make that payoff:
- Online through your My Verizon account
- Using the My Verizon app
- Over the phone with Verizon customer service
- At a Verizon store
Keep in mind, any recurring device credits or promotions you‘ve been getting will stop once the device is paid off – more on that later.
What Happens After You Pay Off Your Phone?
Lower monthly bills
The most immediate impact of paying off your phone early is a lower monthly Verizon bill. Since you‘ve wiped out the remaining device payments, those charges disappear from your statements.
Just how much lower depends on your specific payment plan. But let‘s look at an example:
Say you have a $40/month device payment with 12 months left on your 24-month plan. If you pay off the remaining $480 balance early, your monthly bill going forward will be $40 cheaper (excluding taxes & fees).
That‘s nearly $500 saved over the next year – not too shabby! And if you‘re someone who tends to keep devices for 3-4 years, the long-term savings of an early payoff can be substantial.
More flexibility
Paying off your phone also gives you more flexibility in terms of device upgrades and line changes. Verizon allows you to upgrade to a new device at any time after an early payoff.
So if a shiny new gadget catches your eye a few months after your payoff, you‘re free to make the switch without jumping through any hoops. You can trade in your paid-off phone for credit toward the new one, or keep it as a backup.
This is a notable perk compared to being locked into a 24-30 month payment plan, where upgrades typically require a pricy payoff anyway.
Potential resale value
Another benefit of paying off your phone early? Increased resale value if you decide to sell it later on.
A phone that‘s fully paid off can command a higher price on the secondhand market vs. one that‘s still tethered to a carrier payment plan.
For example, a paid-off iPhone 12 Pro in good condition could net you around $500-600 based on recent resale data. That‘s a solid chunk of change you can put toward a future upgrade.
Of course, resale values vary by model, storage size, and condition. But in general, a paid-off device is a more valuable asset than one with payments remaining.
Is it Always a Good Idea to Pay Off Your Phone Early?
Now that we‘ve covered the potential benefits of an early payoff, you might be thinking it‘s a no-brainer to go ahead and wipe out that phone balance ASAP. But hold up – there are some situations where it may not be the best move.
You‘re receiving promotional credits
If you‘re getting monthly bill credits for your device via a Verizon promotion, be aware that you‘ll forfeit the remaining credits if you pay off early.
Verizon‘s policy states: "If you pay off your device early, you‘ll lose any promotional credits associated with that device."
So let‘s say you have a $25/month credit that was supposed to last for 24 months, but you pay off the phone after 12 months. You‘ll miss out on the remaining $300 in credits you would‘ve received over the next year.
In this case, it‘s probably worth sticking it out and taking advantage of the full promo value before considering an early payoff.
You‘re not flush with cash
While paying off your phone early can lead to long-term savings, it does require a lump sum of cash upfront. If you‘re on a tight budget, coming up with that early payoff amount may be unrealistic.
According to one survey, nearly 40% of consumers said they chose to finance their phone because paying in full would be a financial strain.
If scraping together the payoff funds would mean sacrificing other necessary expenses or your emergency savings, it‘s okay to keep chipping away at the phone balance on the regular monthly schedule.
You like to always have the latest phone
For the tech enthusiasts out there who always want the latest and greatest phone model, an early payoff may not be the best bet.
Paying off your device early essentially commits you to keeping that phone until you‘re ready to pony up for a new one outright. If you‘re someone who likes to upgrade every year or so, you may be better off sticking with a monthly payment plan that builds in upgrade options.
Many carriers (including Verizon) now offer annual upgrade plans where you can trade in your device for a new model after making 12 months of payments. If having the hot new phone is a priority, this might be a better route than an early payoff.
Timing Matters
If you‘ve weighed the pros and cons and decided an early payoff is right for you, you might be wondering: is there an optimal time to pull the trigger?
The short answer is, it depends on your goals. But here are a few timing factors to consider:
Aim for the sweet spot
Assuming you‘re not losing out on any promotional credits, the "sweet spot" for an early payoff is usually around the halfway point of your payment plan.
Why? At this point, you‘ve paid off a good chunk of the balance, so the remaining payoff amount is more manageable. But you still have enough payments left that wiping them out will lead to noticeable savings.
Paying off too close to the beginning of your plan means a bigger lump sum to come up with. Waiting until you only have a few payments left may not be as impactful.
Watch for upgrade deals
If your goal is to pay off early and then immediately upgrade to a new phone, keep an eye out for Verizon promotions that could score you a better deal.
Verizon frequently runs offers like extra trade-in credit, BOGO deals, or bonus credits for new lines. If you time your early payoff and upgrade to coincide with one of these promos, you could save a substantial amount on your next device.
For example, let‘s say Verizon is offering $800 trade-in credit for paid-off iPhone 11 models, plus a $400 Verizon e-gift card for switching to a new unlimited plan. By capitalizing on that promo, you could effectively get a brand-new iPhone 14 for free after your trade-in and gift card.
The key is to stay apprised of Verizon‘s current offers and pounce when a good one aligns with your early payoff and upgrade goals.
Consider the holiday season
Many carriers (Verizon included) roll out extra tempting promotions around major shopping events like Black Friday, Cyber Monday, and the winter holidays in general.
If you‘re looking to pay off and upgrade without breaking the bank, consider timing it to the holiday deals season. A killer trade-in offer or bonus freebie could significantly offset your early payoff amount.
Just be warned that this is also one of the busiest times for cell phone shopping, so you may have to contend with longer customer service hold times or shipping delays.
Real-World Example: How Much Can You Save?
To illustrate the potential savings of an early payoff, let‘s look at a real-world example from a Verizon customer.
Olivia purchased a Samsung Galaxy S21 from Verizon on a 24-month payment plan. Her device payment is $33.33/month. After 12 months of payments, Olivia decides to pay off the remaining balance early. Here‘s how her bill breaks down:
Current monthly bill:
- Device payment: $33.33
- Service charges: $80.00
- Taxes & fees: $7.00
- Total monthly bill: $120.33
Remaining device balance:
$33.33 x 12 months left = $399.96
Monthly bill after early payoff:
- Service charges: $80.00
- Taxes & fees: $7.00
- Total monthly bill: $87.00
By paying off the remaining $399.96 balance, Olivia immediately reduces her monthly Verizon bill by $33.33. Over the course of the next year, that adds up to nearly $400 in savings.
But here‘s where it gets even more interesting. Let‘s say Olivia keeps her paid-off Galaxy S21 for another two years before upgrading again. In that case, her total savings from the early payoff would be:
$33.33 x 24 months = $799.92
That‘s a pretty significant chunk of change! Of course, this is just one example – your own savings will depend on your specific device, payment plan, and how long you keep the phone after payoff. But it illustrates the potential long-term benefits of wiping out that device balance early.
How Verizon‘s Early Payoff Policy Compares
If you‘re considering paying off your Verizon phone early, you may be wondering how Big Red‘s policies stack up to other major wireless carriers. Here‘s a quick breakdown:
AT&T
Like Verizon, AT&T allows you to pay off your device early at any time with no prepayment penalties. After payoff, you‘re free to upgrade to a new phone or leave AT&T for another carrier.
One minor difference: AT&T‘s device payment plans are typically 30 months long vs. Verizon‘s 24-30 month options. So you may have a slightly longer financing term to contend with.
T-Mobile
T-Mobile also allows early payoffs with no added fees. However, T-Mo‘s upgrade policies are a bit more nuanced.
If you‘re on a T-Mobile payment plan with the JUMP! upgrade feature, you can trade in your phone for a new one after making 12 months of payments. If you‘re on a regular payment plan with no JUMP!, you‘ll have to pay off the full remaining balance before upgrading.
Sprint (now part of T-Mobile)
Sprint‘s early payoff policies are similar to Verizon‘s – you can pay off your remaining phone balance at any time with no prepayment penalties.
Sprint does offer a unique early upgrade option called Sprint Flex, which allows you to upgrade to a new device after making 12 consecutive payments. But this only applies to certain phones and plans.
The bottom line? Verizon‘s early payoff policies are largely in line with other major carriers. You won‘t be hit with any gotcha fees or surprising restrictions for paying off early.
Key Takeaways
Phew, that was a lot of info! Let‘s recap the key points about paying off your Verizon phone early:
- You can pay off your remaining device balance at any time after making your first monthly payment
- Early payoff can lead to lower monthly bills, more upgrade flexibility, and increased resale value for your phone
- If you‘re receiving monthly promotional credits, you‘ll forfeit any remaining credits after payoff
- The "sweet spot" for payoff timing is usually the halfway point of your payment plan
- Keep an eye out for Verizon deals and promos that could make payoff and upgrade more affordable
- Verizon‘s early payoff policies are similar to other major carriers – no big surprises or penalties
The Bottom Line
At the end of the day, choosing whether (and when) to pay off your Verizon phone early depends on your unique budget, goals, and gadget needs.
If saving on your monthly bills or having more flexibility is a priority, and you have the funds to cover the payoff amount, it can be a smart financial move. On the flip side, if you rely on device promos or simply don‘t have the cash on hand, sticking with your payment plan may be the way to go.
Either way, you‘re now armed with the knowledge to make an informed decision! And remember, you can always chat with a Verizon rep to crunch the numbers on your specific situation.
Have any more questions about the wild world of Verizon phone payoffs? Feel free to reach out – I‘m always happy to geek out about saving money on tech.
