Opting for the 2 year extension in order to get a phone for less money...

Tweet

So today my phone expressed it's desire to be put to rest as the battery life has dropped dramatically in the past week and it randomly shuts off or freezes. It is about 2 years old and while it has traveled the globe and served me well, it is time to get another cell phone from my provider. But I think this time around I will be passing on the 2 year contract extension that is made available in exchange for getting a cool new phone for cheap. Maybe I'll go for the 1 year extension. Why would I pay more for the same phone you ask? Well here are a few reasons why: One, cell phones break. Whether damaged by accident or component failure we've all had a cell phone break or go dead on us. Many phones have a 1 year warranty that covers mostly everything except water damage which is great. But if you have a phone you purchased on a 2 year extension and it is month 15, your phone is no longer under warranty. To complicate this matter, you'd have to wait until you are eligible once again to get a new phone at a 'discounted' contract extension rate. This means if you damage your phone or it just dies and it is between the 1 year mark and next contract extension date you have to pay full price for a new phone! Then there is the whole aspect of changing technology. By going with the 2 year plan you may save a few bucks, but then you feel stuck with the same phone for 22-24 months when the next cool phone you want might be around the corner. Sure you can purchase that new phone up front anytime, but then again that is paying full price. And what about commitment? Most initial phone contracts are for 2 years and after that you are free to drop the service anytime. Of course phone companies know this so they offer 1 and 2 year contract extensions. Accept the contract extension and you get an expensive phone for cheaper. With the average 1 year extension you may only save 20 or 30 bucks, but with a 2 year extension you'll be lured by savings sometimes topping 100 dollars. This might seem great at first, but 2 years is a big commitment and you are essentially signing a legal agreement that you'll maintain your cell phone service with the company for that time period. If you want to change providers and you've done this extension, you'll have to pay high termination fees which can easily top 250 dollars PER line. While my latest 2 year contract extension deal got me a solid phone that lasted beyond the 22 months until the next new phone extension offer, I have seen many friends and family get stuck with bad phones or phones that fail shortly after the warranty expires. Others have tried to leave a service only to discover they are contracted in for another 2 years. So this time around I am opting for no contract extension and a phone with a mail-in rebate or at least a 1 year extension because with that extension the phone is under warranty for the duration of the contract extension and I can still save a few dollars.