Prepayment of Some Lease Payments

shadowfyr

    I wanted to prepay 7 months on my iphone 7plus and my wife's iphone 7plus but the phone rep told me that it is not possible. That makes no sense to me - refusing a prepayment? What business would do that. Please help.

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      • htghtg

        Re: Prepayment of Some Lease Payments

        Hello, shadowfyr!

         

        I absolutely hate the way T-Mobile manages debt. You're right, it really would be nice to have a different way to pay devices off early.

         

        Anyways, T-Mobile treats all debt as being equal, this means that Phone Payments and Service Charges are kind of lumped together. Meaning that when you make a payment it gets applied to the overall balance of the account (which includes the EIP payment.) Once your account has a zero balance (so after your bill is paid) you can make payments to the EIP balance. Just keep in mind that unless you pay off the entire balance of the phone, T-Mobile will still expect the same payment next month. This is how the Representative explained it to me. See below for an example.

         

        This is a payment schedule for the newest Apple iPhone 8 for John Doe's account. 24 payments of $29.17.

        $29.17$29.17$29.17$29.17$29.17$29.17
        $29.17$29.17$29.17$29.17$29.17$29.17
        $29.17$29.17$29.17$29.17$29.17$29.17
        $29.17$29.17$29.17$29.17$29.17$29.17

        If you make a payment to your EIP after you pay the balance on the account, it will apply to the end of your payment schedule. For example, if John Doe makes a payment of $87.51 it will move the final payment date forward three payments if he has already paid his account balance off.

        $29.17$29.17$29.17$29.17$29.17$29.17
        $29.17$29.17$29.17$29.17$29.17$29.17
        $29.17$29.17$29.17$29.17$29.17$29.17
        $29.17$29.17$29.17$29.17$29.17$29.17

        T-Mobile is still expecting the same phone payment the next month, so paying ahead will not push the charge date nor lessen the amount of the bill on the following months.

         

        If you prepaid 7 months on both phones it would only decrease the amount of time you'll be on EIP, it won't stop them from charging you for next month's payment.

         

        ...Does that help at all?

         

         

        HTGHTG

         

        EDIT: Formatting

         

        Resources:

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        • tmo_marissa

          Re: Prepayment of Some Lease Payments

          Hi, shadowfyr! I noticed that in your post, you mentioned a lease prepayment -- htghtg's example is fantastic, but it references an Equipment Installment Plan financing agreement.

           

          When early EIP payments are made, our system applies the extra payments to the back end of the agreement -- lowering the overall balance and shortening the length of time of the financing plan, rather than removing the coming month or two. Are your payments split over the course of 24 months, or 18 months with a residual balance at the end? If the latter, then instead of an EIP, you have a JUMP! On Demand Lease.

           

          The lease is designed to last for 18 months, at which point the user would opt to turn in the device and get a new device (although they could certainly do so much sooner than 18 months) or opt to pay the purchase option price at the end and own their phone. Additional or advance payments aren't supported in this type of financing agreement, although the entire lease balance can be paid off early as a "buy out".

           

          - Marissa