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Redgumtv
Level 4: Private Eye

Can I repay my 24 month handset plan early?

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If I buy a mobile from Telstra can I repay it earlier than planned?

Old Wizard.
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Level 22: Superhuman
Level 22: Superhuman
Accepted Solution

Re: Can I repay my 24 month handset plan early?

@Redgumtv, my interpretation of what I've researched is that you can pay it off earlier...but if the device had a discount applied when you took out the DRO you'd have to pay the extra for cancelling the 24 month contract early. 

 

Under the "Things you need to know" is written:

Device Payment Contract: You must have an eligible Telstra Mobile Plan in order to have a Device Payment Contract. If you cancel your Device Payment Contract early, cancel your mobile plan during the device payment term or move to an ineligible mobile plan during the payment term, you’ll need to pay out your device, in full. Device discounts do not apply to cancelled Device Payment Contracts.

 

In this link

https://www.telstra.com.au/mobile-phones/sim-only-plans

 

And you'll see some discounted phone's in this link

https://www.telstra.com.au/deals

I am NOT a Telstra employee and never have been. However, I AM a customer who volunteer's my time in the hope to help someone with their question.
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12 REPLIES 12
Level 21: Augmented
Level 21: Augmented

Re: Can I repay my 24 month handset plan early?


@Redgumtv wrote:

If I buy a mobile from Telstra can I repay it earlier than planned?


@Redgumtv Interesting question, I don't know the answer myself.

 

I assume it would just go towards your account balance? Good question though :-)

Hot pineapple donut and a cuppa.... Mmmmmm
Level 22: Superhuman
Level 22: Superhuman
Accepted Solution

Re: Can I repay my 24 month handset plan early?

@Redgumtv, my interpretation of what I've researched is that you can pay it off earlier...but if the device had a discount applied when you took out the DRO you'd have to pay the extra for cancelling the 24 month contract early. 

 

Under the "Things you need to know" is written:

Device Payment Contract: You must have an eligible Telstra Mobile Plan in order to have a Device Payment Contract. If you cancel your Device Payment Contract early, cancel your mobile plan during the device payment term or move to an ineligible mobile plan during the payment term, you’ll need to pay out your device, in full. Device discounts do not apply to cancelled Device Payment Contracts.

 

In this link

https://www.telstra.com.au/mobile-phones/sim-only-plans

 

And you'll see some discounted phone's in this link

https://www.telstra.com.au/deals

I am NOT a Telstra employee and never have been. However, I AM a customer who volunteer's my time in the hope to help someone with their question.
To show your appreciation to myself or another member, please click on the LIKE or mark as a SOLUTION for any post that you have found helpful on this forum.
Redgumtv
Level 4: Private Eye

Re: Can I repay my 24 month handset plan early?

Thanks, since placing this question I've had an on-line chat with Jake who told me that there are no restrictions or penalties on early repayments but I should phone 13200 at the time to let Telstra know (I'm on Direct Debit).

One thing about Telco's, you can always get two answers to every question.

I'll go down to the local store and see if I can get a third response.

Old Wizard.
Redgumtv
Level 4: Private Eye

Re: Can I repay my 24 month handset plan early?

I might add that Telstra plans are no longer contracted but month to month. Although there is only one monthly payment you can change or cancel your service agreement at any time without penalty other than paying out the handset upon cancellation.

i.e. As long as I keep the month to month service going I believe I could pay out the phone in six months. Telstra don't charge interest.

Old Wizard.
Level 22: Superhuman
Level 22: Superhuman

Re: Can I repay my 24 month handset plan early?

Yes, I agree that you can always get 2 answer's (or more) to every questionSmiley Happy

It will be interesting to see what you get told at your local Telstra store.

 

The Telstra number to ring is 132200 (just incase it wasn't a typing error in your previous post)Smiley Wink

I am NOT a Telstra employee and never have been. However, I AM a customer who volunteer's my time in the hope to help someone with their question.
To show your appreciation to myself or another member, please click on the LIKE or mark as a SOLUTION for any post that you have found helpful on this forum.
Level 22: Superhuman

Re: Can I repay my 24 month handset plan early?

As the stores are largely licensed / franchised, I suggest you speak to Telstra Disconnections who are specialists in this area. If you ring 132200 between 9am to 9pm AEST your call should be answered in Adelaide. Make sure you say Disconnections when 132200 answers and when you finish speaking to the Disconnections agent .. get an Interaction mumber for the call.    It will be a long number starting with INT

A "Like" is always appreciated. If my advice is a solution, please mark it. I'm not a Telstra employee.
50 + years exp. in radio comms., eg mobile phones since 1963, two-way radios, base stations, antennas & pagers. One of my mottos: "Believe in yourself, and you can accomplish anything".
Level 21: Augmented
Level 21: Augmented

Re: Can I repay my 24 month handset plan early?


@Smiley3 wrote:

Yes, I agree that you can always get 2 answer's (or more) to every questionSmiley Happy

It will be interesting to see what you get told at your local Telstra store.

 


@Smiley3 That's always been a problem when speaking to the oversea's reps. Finding one that actually knows whats what is the challenge.

 

@Redgumtv Let us know if you succeed :-)

Hot pineapple donut and a cuppa.... Mmmmmm
Redgumtv
Level 4: Private Eye

Re: Can I repay my 24 month handset plan early?

Smiley3, that was good advice. The local Telstra store, in a roundabout way, gave the same answer. So the outcome is you only benefit from these type of Telstra contracts if you let them run the course, without alteration. Any early repayments will cause you to lose your discount through penalties of up to $360.00. Even if you go near full term, and pay early, you will be penalised a lesser amount. Like banks, the Telstra contract is interest free and discounted but the hidden charges can be very expensive and possibly well in excess of the original discount.

Old Wizard.
Support Team
Support Team

Re: Can I repay my 24 month handset plan early?

I'd like to clarify this a little. Each service can only have one DPC - Device Payment Contract, active at a time; so if you recontract early in order to take up a new DPC, then you're billed for the remainder of the original contract, in a lump sum on your next bill. 
If you simply want to pay bills in advance without recontracting; keeping the same handset and plan, then you can certainly do so without penalty.
- Matthew. 

Need help? Check out our Community Wiki or Support Portal || Looking for a new mobile? Order online today || Get help with any Tech at Home with Telstra Platinum || Don't forget to tag answers as Accepted Solutions and give a Like to the member(s) who helped you out.

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Redgumtv
Level 4: Private Eye

Re: Can I repay my 24 month handset plan early?

Hi MattyC,

Now, that seems more logical, however, what is the situation if after say, 18 months, I have repaid the handset and the service contract is up to date ($120 pm). Do my repayments reduce to say, the service contract amount. i.e. $50 per month?

My plan is roughly $120pm (handset $70 + $50 for plan) $2160 after eighteen months.My contract is for $2880 and I've paid $720 in additional payments for that 18 months. I'm square and the contract debt has been paid.

Can I continue on the same plan with the same handset at $50pm? Or do I need to pay at $120pm, an extra $420 until the 24 months are up? This is considerably more than the original cost and a higher penalty than terminating the contract.

Old Wizard.
Support Team
Support Team

Re: Can I repay my 24 month handset plan early?

The additional payments that you've made would show as a credit on your bill. So if your monthly repayment was $120, and you paid $150 instead, then after 12 months you bill would show a credit of $360.
In that scenario, your monthly charge would still show as $120, but you could switch to paying only $50 each month, and the other $70 would be deducted from your credit amount, until it got down to zero.

Does that make sense? - Matthew. 

Need help? Check out our Community Wiki or Support Portal || Looking for a new mobile? Order online today || Get help with any Tech at Home with Telstra Platinum || Don't forget to tag answers as Accepted Solutions and give a Like to the member(s) who helped you out.

All moderation actions are supported by the CrowdSupport Community Guidelines

Redgumtv
Level 4: Private Eye

Re: Can I repay my 24 month handset plan early?

Thanks Matthew, that's clear now.

Actually it's a great deal, no interest and no penalties if you manage it right. And I've still got my $2000 in my pocket.

I've bought a "best on market" mobile phone, Telstra have given me a $200 discount (5G component) and Samsung a $490 pre-order discount so I end up paying $1200 approx which is a 36% discount. Plus, I've got flexible insurance that replaces the phone if lost or damaged for a period I determine and a trade-up guarantee.

Probably wouldn't work for a lesser phone (discounts are important).

Now, if only someone would sell me a house property on the same terms I would be really happy.

Thanks Matthew and Telstra for a great deal.

John.

 

Old Wizard.

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