April 20, 2016
You’ve discovered your perfect contract! But you’re still stuck in another. Should you stick it out, or take the hit of the migration or cancellation fee?
So you've used Tariffic to see how much you could be saving on your cellphone bill if you were to switch to your perfect contract.... But you're currently stuck in a 24 month contract! You know that by being on the wrong contract, you’re just wasting money. You may ask yourself, is it worth paying a cancellation fee in order to terminate your contract and get out quicker? If you do this, will the long-term savings outweigh the initial termination fee? What is actually going to be the most cost-effective option?
There are a few options to help in this type of situation:
Option 1: Save within your current contract
You can add a bundle to your existing contract. This will reduce the expenses you’re incurring when you go out of bundle (which is most likely happening, if your bill is a lot higher than what the contract is). By adding a bundle, you’ll pay in-bundle rates which will bring your overall costs down, and save you money.
Option 2: Upward migration on your same network
Upward migrate your current package. There’s no charge for ‘migrating upwards’. This means you can move your contract to a more expensive package within your network, without incurring a fee. Yes, your overall contract may be more expensive than your current one… but it will probably be more suitable for you, so your overall bill will be cheaper as you won’t be getting stung by going over your allocated minutes or using up all your data.
Option 3: Bite the bullet and terminate your contract
Cancel your contract, “migrate downward” (move to a less expensive contract within your current network) or move to another Service Provider. These three options all come with a cost. This cost is dependent on a number of factors such as how many months you have left to go on your contract and the subsidy you received for your handset. These factors vary from operator to operator. Take a look at an article MyBroadband wrote on contract cancellation. They provide us with a good summary: http://mybroadband.co.za/news/cellular/131546-cellphone-contract-cancellation-what-you-will-pay.html
If the contract that you’re keen to change to has really big savings compared to the one you’re on now, then it may well be worth it to pay the termination fee and jump ship. If the savings aren’t too much, then perhaps consider migrating or adding a bundle to counteract the out of bundle rates you may be incurring.
Another option to consider is Cell C’s Buyout deals where they’ll pay up to R20k to buy you out of your current package. But be careful - it comes with lots of T’s and C’s and is only available to their new Epic and Pinnacle packages.