Thanks to Dave, I sold my IPhone and now use 2 cups and a piece of string.

@Dev4467

4 жыл бұрын

🤣🤣🤣

@ericaford1454

4 жыл бұрын

Beautiful 😂😂

@shaylasenpai95

4 жыл бұрын

😂😂😂😭😭

@waughstreetglass5202

4 жыл бұрын

@Andrew H add the 1 ply toilet paper and now we're really saving money!

@DistrustingToaster

4 жыл бұрын

Did you pay for the cups outright?

When you’ve watched so many of these videos that you can read the title and know what Dave will say......

@colin1818

4 жыл бұрын

Agreed. You usually even know the jokes and sayings Dave is going to use - because he reuses them over and over. I went through FPU in 2007 and the jokes were all the same even back then! - "Sell so much stuff the kids think they're next" - "American Distress, Discover Freedom....." - "I drove that car for 10 years one three month period" - "Back when you were driving a 1902 Pinto" - "Rice and beans, beans and rice"

@MrKijana23

4 жыл бұрын

@@colin1818 sell the dog in ebay, put the cats on Craigslist... Chase this... Capital one: What's in your wallet? Money!!

@ViviansLog

3 жыл бұрын

Hahahah so true!

@carstuff4u942

3 жыл бұрын

That’s the rub, right? I’m surprised that he even has a talk show anymore. Just read his darn book.

@colin1818

3 жыл бұрын

@@carstuff4u942 - There's a reason that rock bands are still touring and playing the material they wrote 50 years ago. Even if you know all the words by heart, people still enjoy hearing it.

If you can't pay for them outright, then payments are debt.

@itsallbusiness3784

4 жыл бұрын

100% true

@MCFC248

4 жыл бұрын

No it's not. Debt from an accounting standpoint is a financial obligation you CANNOT pay off and are liable to pay them. A cell phone plan is not that. You can cancel and pay a fee. You can't cancel a loan and pay a small fee. They're both liabilities meaning you have to pay it, but it's not normal 'debt' the way people use the term. It's semantics.

@CheesyNoodlez

4 жыл бұрын

Rivaldo16M The question was about the financed phones. Not the actual plan itself. That is a debt.

@tonyunderwood9438

4 жыл бұрын

@@MCFC248 I think you're mis-understanding what's going on. If you sign a cell phone contract, you are more correct. It's still a financial obligation, but there are contractual outs where you can pay a fee or whatever to get out of it. However, even in that situation you still are financially obligated which is kind of the definition of "debt". With this particular caller, he's not talking about his plan itself he's talking about the cellphone itself that he financed with AT&T. In that case he bought a $600 cellphone and is making payments on the cellphone through AT&T. If he cancels his contract or stops paying they will come after him for the remainder of the $600 that's unpaid. It is 100% a debt in every sense of the word. If we extrapolated on your definition of debt it could be argued that a car lease isn't debt because you can pay a fee and get out of it at any time.

@TheeSamuelNelson

4 жыл бұрын

Well.. you can never pay for cell phone service without making payments

Every time I’ve financed a phone it’s always been at 0% interest. Debt is still debt though no question about that. People wouldn’t be buying nearly as many $1000+ phones if they had to pay for it all at once.

@mattworkman1583

3 жыл бұрын

Anyone who offers 0% interest is counting on a large portion of their customers to miss a payment. If you read the fine print of the financing agreement, there is usually a large penalty to being late on even 1 payment. Take RoomsToGo for instance, they offer 0% financing, but if the total amount isn't paid off in 4 years or if you are late on a single payment, you then owe interest at a high percent for the full amount backdated to the original purchase date.

@RoastBeefSandwich

3 жыл бұрын

It's not 0% really, the plans are more expensive to cover the finance charges silently. Prepaid and plans like Sprint Kickstart are cheaper because they don't allow financed phones.

@RoastBeefSandwich

3 жыл бұрын

@Peter Skagen Peter they use the same networks as the big boys. Total Wireless uses Verizon's network for example, I pay $85 for three lines with 60GB of data. The only thing I give up versus Verizon is the ability to finance phones and international roaming.

@RoastBeefSandwich

3 жыл бұрын

@Peter Skagen you do miss out on roaming agreements, but that's mostly only an issue in limited areas of the country and only with some carriers. And as the cellular industry continues to consolidate it will be even less of an issue (Verizon purchasing Bluegrass wireless, sprint purchasing shentel). Considering the immense savings available it's a very worthwhile tradeoff.

@ClearOutSamskaras

3 жыл бұрын

People buy cell phones that cost $1000? Why?

Working for a phone store i can tell you 90 percent of people finance their phones. The average phone price is about 800 dollars i sell and the majority don't have the money to buy it outright but want to flex with their 1000 dollar phone. Even worst is a lot don't even have the $100 to even cover the taxes. These same people wonder why their bill is so high..

@logdon17

4 жыл бұрын

lol, and people wonder why they can't move up the financial ladder, they are focused on buying depreciating assets for the short term happy fix they need

@randomvideosn0where

3 жыл бұрын

@@logdon17 To an extent it is an incredible tool (depending on how you use it) but there are definite diminishing returns as you get into the newer/more expensive phones. I use a $150 phone I bought 5 years ago and while it's not as good as a modern phone by almost any metric, it is a landslide victory in the price category.

@christopherrosas2738

3 жыл бұрын

The funny thing is alot of the phone companies will talk you into financing it because it's only a few dollars a month...... I'd rather have a phone that is outright mine..... sure it may not be the latest and greatest, but it does what I need it to do and it's paid off

@logdon17

3 жыл бұрын

@@randomvideosn0where yea that is what i was saying, buy a phone for a couple hundred dollars that does almost everything and not make payments on something that costs close to a grand.

@Phougi

3 жыл бұрын

Woah woah your sticker says $41.67 why is it $120 today

I'm debt free and getting close to becoming a millionaire. I love my Samsung Galaxy A10s that I bought for $130.

@Derek8487

4 жыл бұрын

People are nuts to spend $900 plus on cell phones IMO.

@brillopower1492

4 жыл бұрын

Hey! That's my phone too! Costco?

@josephrodriguez4944

4 жыл бұрын

@@brillopower1492 I sell them at Best Buy

@MrKijana23

4 жыл бұрын

Get it boy!! Love it!!

@zybard01

4 жыл бұрын

Same net worth here and the most I ever paid was $125 for a samsung J2 phone off Amazon. I make $80k+ and work with people making $25k/yr that have the $800-1,000 phones.

Haha, I bought a new phone yesterday and people were suggesting to make payments. No way!

@ma93256

4 жыл бұрын

I have worked for 3 major carriers and sometimes there’s promotions were it’s cheaper if you finance, if you’re looking to buy outright it’s best you go elsewhere like amazon eBay, you can get a much better deal there or even target, Best Buy etc sometimes they’ll give you gift cards. In other words you will never get a deal if you buy outright at a major carrier store. I’ve always done this.

@ma93256

4 жыл бұрын

Tannypat S that’s awesome good stuff, debt free is a win but definitely gotta stay humble about it.

Do this: buy a used or referbished phone on eBay thats 1 or 2 years old for 1/3 the OEM price. Then activate it yourself. I have not been to a Verizon store in a decade.

@Carlos-sh6iu

4 жыл бұрын

I prefer amazon renewed, but yes I agree. I bought my phone for half the price a year later.

@h.e6604

4 жыл бұрын

Breckon Carter I think they meant to say original price

@justinmichaelknox

4 жыл бұрын

Ooooo I like this

@mememefirst

4 жыл бұрын

Where do you activate it?

@dbe_manny

4 жыл бұрын

@@thatflymechanic unauthorized repair of consumer electronics rarely has access to OEM parts despite the technicians often possessing higher skill. I would recommend Louis Rossmann's KZread channel to learn more

Pay it off and don't upgrade until absolutely needed. No one needs a 10 billion mega pixel phone to take just regular pictures.

I work for Apple and a lot of people finance their phones. The ones that don’t almost always pay either with cash and/or debit card. I die inside a little every time someone finances their product 😩

@ZayingIt

3 жыл бұрын

Ryan Werner yup really hard, but most people agree with the principles; they just don’t follow them.

@riotmakerzify

3 жыл бұрын

is there interest on phone plans? if not why not finance

@ZayingIt

3 жыл бұрын

Jahseh N no there’s no interest on phone plans; it’s just that the whole point of being debt free is avoiding things that put us into debt; financing a phone does that.

@certifiedlover2748

3 жыл бұрын

@Pipe Dreamer word, I don’t understand if you want a new phone then save your money up for the phone so that you can buy it outright. It’s better you will only be paying for the service. Instead of the phone and service every month. But most people don’t have money for what they are buying.

@robertbonds6680

Жыл бұрын

@@riotmakerzify illogical comment

When my husband and I went into US Cellular to ask about phone plans, we COULD buy the phone outright, but they would have added a fee that was equal or higher than the interest we would have paid. We walked out and ended up with a US Cellular prepaid plan from Walmart where you buy a cheap phone upfront and only pay for service every month.

That’s exactly what I told my husband. Debt is debt.

How weird would "paying off a phone" sound 30 years ago?

@ronyalemerrill

3 жыл бұрын

Exactly!

Prepaid plans are the way to go! I used to pay $92 a month switched to prepaid for $35 a month, same data and all. Now it’s down to $25

@abark

4 жыл бұрын

I gave up trying to tell people I knew to use lower cost options like Cricket instead of ATT. They all whine about being broke and wanting to spend less but never will.

@cardiac711

4 жыл бұрын

👍

@whitegoodman7465

2 жыл бұрын

yup, im with telus in canada and their postpaid plans start at like 80 a month, no thanks. I pay 45, use to be 30 but i changed my plan for more data. Much better.

@deewest1472

Жыл бұрын

$60 dollars unlimited cricket is not a bad way to go.

I keep my phones for four to five years. When I know it is year that I am going to upgrade, I start putting aside $100-150 per month in January so that by September (iPhone launch) I have enough to buy the phone, case, and screen protector with cash. I also do ATT prepaid plan for $300 per year, and I cannot finance a phone with that plan. It works well for me.

When ever I get a new phone I always get older models that don't cost anything. I could pay $140 a month for the newest thing out. Or go back 2 models and pay $80

My wife had to get a new phone recently. We were in the AT&T store, and they no longer put prices on anything in the store. By having no prices listed, you have to ask the sales guy, who can then talk to you in terms of $36/mo vs $19/mo rather than $1,300 vs $500. Such a blatant scam. He was also taken aback that were going to pay the full value upfront. I would bet 80%+ of people are doing the monthly payments. And again, they're buying premium phones over $1,000 that they don't need and wouldn't buy if they were paying upfront. But when put in the terms of being an extra $10 or $15 a month rather than an extra $500 or $700, they're indulging. Awful sales tactic.

The reason they integrate it into the service is so that it's harder to find out how much more your paying for the phone compared to just buying it outright.

Some people finance everything - phone, tv, furniture, computers, etc and then put it on a credit card (effectively paying interest twice).

Dave is the MAN!! Because of him I got out of my comfort zone and have shared my Ecommerce experience and financial journey online and would love any feedback/support! Cheers and wishing you guys the best!

@majakrolsbeautychannel8701

4 жыл бұрын

Will definitely watch your channel and tell you what I think!

@buildecommerce3643

4 жыл бұрын

Checked it out! Love the content would just say better audio

blows my mind that people finance relatively inexpensive items like cell phones...

Iphone SE is $400 and $450 with more memory. If you want in the game but don't care about having the best model it's a heck of a deal. It's still a really good device. Samsung has models cheaper than the S line too. When you buy a phone that's not locked to a carrier you can do month to month and jump providers when your bill increases or a cheaper competitor comes along.

A phone payment plan is just like any other payment plan, it's a debt for something. Treat it just like any other small debt and put it first in your debt snowball.

@andrewohlwiler2727

4 жыл бұрын

Are utilities debt...

@BoarPlaysGames

4 жыл бұрын

Andrew Ohlwiler Utilities are Expenses. Phone service bills are also expenses, but owing on the actual phone is debt.

@andrewohlwiler2727

4 жыл бұрын

So it is looked at different one thousand dollar payment or two 500 dollar payments?

@BoarPlaysGames

4 жыл бұрын

Big Bubba Utilities are expenses, just like groceries, insurance, fuel etc. They are an expense that is due monthly based upon use, but if you pay off your utility for the month and disconnect service you’ll never have to pay them again. All publicly traded companies will show utilities as expenses.

I got my phone preowned from target's website. Then i logged on to my carrier website and put in my new phones info. No salesman involved. Easy

The service bill is not debt! But if the phone is financed that's a debt!!

@izziereal2010

4 жыл бұрын

That's exactly right.

@born2win259

4 жыл бұрын

Agree with that

@Retiredmco

4 жыл бұрын

@Big Bubba To be clear you say the monthly cell phone service bill is debt??

@wittyusername9544

4 жыл бұрын

Guess who? Yes when you receive your monthly bill it is debt. Because you owe them money. If you don’t pay the monthly bill, they will call debt collectors eventually. The Billings of the future don’t count as debt because they haven’t been billed yet.

@Retiredmco

4 жыл бұрын

@@wittyusername9544 Ok using your stated logic. Your car, renters or homeowners insurance, health and medical insurance is a debt too!

I was in a Rogers store up here in Canada a few years back. A 50ish old woman came in and wanted to buy new iPhone. The sales representive was doing everything possible to try to convince here to go on a contract without buying phone upfront. An argument started and the customer turned around fuming. A manager of the cell phone come whispers to the sales representative, "just let her buy the phone. You did your best trying to convince her and she is not willing to even consider what you are trying to do."

It doesn't make sense to buy a new cellphone every year especially since they go up in price every year. It's kinda sick because they'll get you finance then once your yr up they'll sell you a more expensive phone that's slightly different and get you finance that one. So it's a never ending debt....

Bought my phone unlocked, on sale and have saved so much over the past year

Treat phones the same way that you treat cars. I kept my flip phone until five years ago, when I absolutely had to go to a smartphone for work purposes. Since then, I upgraded once because the old iPhone was no longer compatible with the new operating systems. Hold onto it until it is no longer functional, not until it’s no longer fashionable.

@kagoatleonard4019

3 жыл бұрын

I agree. Thats why I like Iphones. They will keep receiving updates for 5-6 years. I dont mind spending $800 dollars for an iphone every 5-6 years. I dont like buying android as I have all of my photos and data on my iPhone. I also make $14k a year as a part time student. Many people may say im crazy for spending that much on a phone but I use it as a tool to help me learn new things. Other phones are just too slow for me

I have ATT Unlimited 100gb and 30gb hotspot before they throttle down the speed Worth every penny I watch Dave

Short story, back in 2015 I leased a phone, it was $20 for 18 months. However, the electronics store had a promotion where a $19 credit was issued to my account. After the promotion was over, I paid the phone company $18 to own the device and used it a total of 4 years. You have no idea of how much remorse I feel for not thinking about paying in full back then. You have to see down the road for what is better and decide accordingly.

Just Paid My Phone Off. Thank you Dave and the Ramsey Team!! Baby Step 3!!

Wow! Never thought that through. I paid my phones off as soon as the video was over.

@reneea7811

4 жыл бұрын

You Rock Jake! Knowledge is power!

I got one on swappa earlier this year. Never used and got it for almost half as much as buying it directly from Verizon. I just made sure that the phone model would work with my carrier and took the SIM card from my old phone and put it in the new one.

That look on both their faces at 1:10 wahahhahahaha

Financing a phone is down right insane!! When an electronic cost as much as a mortgage or rent payment, and you finance it.. it means you can't afford it!!

Pay off phones and switch providers to a cheaper option. I was At&t for 7 years..switched to Wing with the same perks and cut my bill in half.

People always look at us sideways when we explain that we buy phones outright. Never even crossed their minds to do that.

I financed my first two smartphones, paid over the two years of my plan, the payments added to my phone bill. But after I found Dave, I'm paying for any new phones outright.

@David-cm4ok

4 жыл бұрын

I'll be doing that too. I wasn't sure if they could be considered a bill, just the same as your gas or electricity or whatever?

@jimmyboy1582

4 жыл бұрын

Yeah i just go to Apple and buy my phone outright bo worrying about unlock after I paid for it, no tying me a network.

@rthilson

4 жыл бұрын

And then you paid more for the actual service or signed a contract

@SidewaysEightSix

4 жыл бұрын

Beware! Go straight to Apple. AT&T won’t allow you to buy the iphone outright.

@euenfheiejrj

4 жыл бұрын

SidewaysEightSix really? I don’t have att but I bought my iPhones outright for Verizon and Tmobile

Dave doesn’t care about 0% financing , he says buy things outright , and have an emergency and don’t use a credit card

@fredericktaylor367

4 жыл бұрын

I think 0% financing is a good idea if you need because it frees up more money that u could use to make more

@mosharafkhan3027

4 жыл бұрын

@Austin Duke well said

@justshady

4 жыл бұрын

0% sounds great until you end up with cellphones, OLED tv, laptops and cars you don't need. That's where they get you.

@ngb802

4 жыл бұрын

I understand that maybe not everyone can buy it out right , I mean it’s almost 600 to over 1000 for a new phone , I just don’t like having a higher monthly bill , and the funny thing is they use to have 2 year contracts, now it just seems like you pay the cost of the phone for 2 years and if u cancelled you account / plan you have to pay the whole amount of the phone anyway. i know Dave likes to buy things outright , wish he could show us how to do that for a house

@justshady

4 жыл бұрын

@@ngb802 99% of the population can't pay for a house outright, so the mortgage is acceptable. The reason cell phones are expensive is because people are willing to finance them into their bills. $1000 for a device that makes phone calls is crazy, but for $29.99 a month sounds less crazy plus you're going to be stuck at that carrier for at least 2 years. Most likely you'll buy all the perks and bring your family over. Source: I work for a telecommunications company.

Now that I'm financially set I'm buying my phone's straight cash, then right on a prepaid plan no more contracts

I paid 90 bucks for a refurbished Android phone at Wal-mart and signed up for Straight-talk with no contract. It seems to have worked out pretty well.

I bought my phone straight out, and use Mint mobile-where I pay yearly for their service

If you are "given" a phone because of the contract you are on, you are still financing the phone it is just not a line item.

I like how he says July, “Due-Lie”😂

I think he wanted to know which to pay off first. He knows he needs to pay both but one is included in a monthly bill and one is just another set amount. I would clear the set amount debt first then start working to pay off the cell phones.

If you don’t pay full price for it outright, they work the price of the phone into your bill - it turns into a 2-year lease contract.

Avoid contracts for cell phone services. No company will give you discounts without them recuperating the loss from it or other promos. Also, if the service is subpar, or you move to a different area with horrible service, you're on the hook with the company. Prepaid is the better option, and for goodness sake, pay cash for the phone. I bought my LG G8 on Amazon Renewed for $215 and it's a great phone.

Unfortunately it costs more for the phone to pay for it upfront... They "force you" into financing it monthly for $10/ month over 2 years vs paying $500 upfront... It's a complete joke!

@Christyy333

4 жыл бұрын

No they don’t lol

@AH-up8zh

4 жыл бұрын

@Dr. Johnny Sins we are with Verizon... Each carrier does it differently unfortunately

@euenfheiejrj

4 жыл бұрын

That’s not true. It’s the same price to pay it upfront vs monthly. I’ve bought it full price through Verizon and now tmobile and never paid more...

this is the problem with people wanting the newest cell phone all the time. it's very easy to buy a cell phone to the point that most people i've seen complaining about being buried in debt still manage to carry the latest iPhone or Android phone. Buy one in cash outright and you'll find out pretty quickly how badly you really want that new and shiny object.

My dad just picked up a new phone from T-Mobile and they have an “upgrade fee” all I heard was “we charge you to buy something from us” and I told him to go to Apple instead

People like having cellphones that are crazy overkill for their need. Oh your phone has 4 camera, can play 3D VR games! Sweet! Those features you never use just cost you an extra 600$.

Over 200 a month for a smartphone???? You can buy a full smartphone for that, and then buy some prepaid stuff instead of a monthly bill

Yes... I just bought my iphone used and then I am on a sim card only contract (£17 per month)

If you have AT&T, pay off your phones and switch to cricket wireless. Same service, same network but only 50/month for unlimited and 80/month for two lines and 100/month for 4. I used to sell phones and I don’t see any reason why somebody would pay higher amount to a bigger company when there is a smaller prepaid one on the same network that’s cheaper 3-4 times

@billsandrew

4 жыл бұрын

I like Wing. They use AT&T towers and I can pick a low data plan and if you exceed it, you just bump yourself to a higher plan for the month. So for someone like me who rarely uses much data, I only need to pay for more data when I actually need it. I pay $22/mo most months.

My current TMobile phone i could have paid full price minus a trade-in or get the trade in plus and extra 25% by paying the phone off monthly via a bill credit. Was 25% cheaper to do the plan which is because they want you to get used to the monthly cost to always upgrade instead of letting the charge fall off when the phone is paid off. Do whatever is cheaper but if it is monthly then have self restraint

Yep. A payment plan for a phone is, but paying for the service and data is not. Pay off the phones.

I usually buy my phone refurbished unlocked outright and 2 or 3 models behind the current model and use them for at least another 3 years working out great so far

Ok, so our ATT plan is 0% interest, my wife’s phone is essentially being paid for as well go through the promotion while mine is not. We would lose out in the promotion discount by paying it off = cost more money. I’m not sure I’m with Dave on this. They literally take cost of phone and divide by X months. We would have lost out on $600 if we had bought the phone outright.

@peterschmid2918

4 жыл бұрын

I think that Dave has to air on the side of oversimplifying things. The simple truth is that most people don't need a phone that is so much money that it makes sense to finance. When a person is drowning in debt, they honestly should be purchasing a used phone and putting it on the cheapest prepaid plan available ( there are plans that have some data starting at 15 per mo) Until they are back in control of their finances. ATT can offer you a buy one get one promotion because the monthly cost associated with your phone plan allows them to recoup their loss inside of that 24 mos. When you start to look at the picture as a whole i.e $20 over 2 years with $200 out of pocket vs lets say $60 over two years with $100 out of pocket, you start to see a different picture altogether

@cesarbahena8625

4 жыл бұрын

There's always a buy phone and a get phone. You get monthly credits for the get phone which you can not pay off because you would be losing out on the monthly credit. However you can pay off the buy phone.

@earlsweat9727

4 жыл бұрын

You’re right, actually. I don’t agree with Dave here neither but it’s also not his fault he doesn’t account for early termination fees or not accounting for promos (the caller didn’t say). I do agree with Dave partially though: don’t finance a cell phone. After the contracts end and you plan to buy another phone: find a phone on sale and buy it out right.

@One-12937

4 жыл бұрын

How many discover points do you have bro?

@stephenharris2495

3 жыл бұрын

Big Bubba if the phone is $1200 and you are getting 1/2 paid off monthly, that equals $600. Also 0% interest. Will it make me a millionaire? Nope, will it save me $600? Yup.

Having two iPhones a I watch and a iPad was like 350 a month payed then off and I went to just paying $50 a month for just the service

I would say so and a phone is only like $500. I never financed one. If you can't buy a phone out right you really need to make some changes

I bought a used phone on ebay for $45. Had it 2 years. It works fine.

Thank you!! This was information was really helpful for me. I’m on baby step 2. I’ll pay off my phone today

Former cell phone salesman here. BEWARE OF HIDDEN LEASES ON YOUR DEVICE! Sometimes employees will get incentive to make customers lease their phone instead of buying it. I won’t go into all the things that make this a stupid idea, just make sure anything you sign does not say lease on it.

I had financed a iPhone XS with T-Mobile, for 12 months on a Payment plan . It seemed like a smart idea at first lol but after 3 months I was not feeling it so I went ahead and paid it off ! All I have is just the plan . I like it that way . So yes financing a phone n plan isn’t smart long term but good thing about it is after you pay off the phone you own it AND u can trade it in when it upgrade to another phone .itll be credit toward price of the new upgrade ! But either way PHONE DEBT can be in the way at times .

4 lines $120 everything unlimited and Amazon Prime inluded and 15GB hotspots for each line with metrobyTmobile. All phones paid outright.

One thing I've always wondered is if a one-year lease on an apartment is considered debt. I mean, you're signing an agreement to make 12 monthly payments and I'm pretty sure they can sue you for the total amount of the lease if you break it. If it is debt, should I prepay my lease so that it's "paid off" before the rent is due? I don't think I've ever heard Dave address this.

@SmoothJK

4 жыл бұрын

My guess is he would treat it like a mortgage, meaning it is separate from Baby Step 2. You need a place to live, you don't need a credit card (or other debt).

@peterschmid2918

4 жыл бұрын

All you need is 20,000 up front Lyle, this is practical stuff!

@---cr8nw

3 жыл бұрын

Debt is money you owe for goods and services you have already received. For example, medical bills are debt. The copay that you pay at the time of service is an expense. A monthly utility bill is an expense. An overdue utility bill is debt.

I was literally just wondering about this earlier today.

This video made me pay off my phone instantly; Last time I bought a phone I paid it instantly in full but this time around it slipped my mind. Only had $200-ish left so definitely late to the party but better than never.

But least expensive option in stock, keep for as many years as possible until it’s absolutely not usable anymore, repeat.

I don't know if it's still like this today, but it used to be that they'd give you a better deal if you agreed to finance a phone instead of buying it outright... Probably to force you to use their service for the full 2 years.

I just went to AT&T few days ago. I got into an argument with the seller. He didn't want me to pay the full amount of the phone because they are a service store, which was not making sense to me since they sell phones. So after arguing back and forth, he changed the answer and said I can give a deposit, now I have to get back to the store in 15 days to pay my $40 dollars balance. I know most people dont like to question, but I questioned this guy until he got tired of me and gave the answer that I was looking for and I just wanted to pay the full amount of the new phone 🤷‍♀️. I was just following papa Dave's advice.

I've been doing prepaid and buying $100 phones for years now. My phone bill is my second smallest bill next to my water bill. I'll never go back to latest model phones and payment plans ever again. We are living in a time where years old technology is still awesome technology. Most of us don't NEED current model phones anymore unless you work in the tech industry or do work that's dependant on being on the cutting edge.

I work for a big phone company and I be having the same question about payments on these phones

I fell for that in 2014 with a new iphone 6. They make it so that you cannot pay extra you have to pay the full amount all at once. They would charge 15 bucks per GB that if you went over your data cap. Omg i was horrible with money. Now i wait until have all of the cash but the phone outright and make sure the phone is at 1 year old. Never again.

Just paid the remaining balance of my phone after watching this.

@reneea7811

4 жыл бұрын

You Rock David!!! Knowledge is power!

@teev7

4 жыл бұрын

That’s awesome!

Whoever made this call if you see this, pay off both phones switch to a prepaid plan for way cheaper

@HaywoodHomestead

4 жыл бұрын

Will you please change your profile pic, I just started blowing at my phone thinking it was a hair. 😁😁

@jackiem9460

4 жыл бұрын

That's what I'm saying! I pay $30/month with Cricket, live in a rural area, and have no problems.

@dannyboy7825

4 жыл бұрын

@@jackiem9460 Very Very true my sister. I'm with cricket too. You can go in a lions den and still have reception.

I

I’m going to pay off my phone debt too in my next paycheck. It’ll definitely lower my bill.

OMG !!!!! I never thought about it !!! 😳

Don't do a payment plan for your phone. Steer clear of rolling the cost of a brand-new phone into your wireless bill. You'd just be making payments on a new phone (yeah, that counts as debt) all while it hikes up your phone bill even more.

There a weird status that is attached to cell phone ownership that I will never understand. I dropped at&t years ago for the exact prepaid service with straight talk. There is no difference. It even still says at&t. But when I tell people about the service after they complain about their bill, they always look down on the plan. It's strange but I think many people actually prefer to pay higher phone bills.

I don't know of any phone company that charges interest, and financing phones now is FAR more transparent than the "2 year contracts" of old. Cancel service with phone payment-you owe the remainder of your phone payment. Cancel service on contract- what do you owe? No one knows. The 2 year contract was not transparent.

I paid my cell phone balance (for phones not service) to reduce my monthly cell phone bill from 280 to 200 (5 lines). Now I’m moving to pay off my credit card.

Honestly it is I did it once and never again used to pay 100.00 a month which easily over two years makes the phone purchase amount to roughly 4 grand now I have a 20 dollar phone plan with an iPhone X and I’m happy.

everyone calling in has a phone loan they forget about, having a 100 dollar phone bill every month is another hole in the canoe

@TeKnoVKNG23

4 жыл бұрын

@Rawkfist1501 Try to cancel a cell plan early and see all the buy out fees you have to pay. Most of those $100 phone plans have the cost of the phone added in as a monthly charge.

@dthomas7931

4 жыл бұрын

TeKnoVKNG23 there aren’t “all those buyout fees” if you cancel a phone; the only fees you owe are either the ETF if you’re on a contract, or the balance left on the phone, which is the same as if you’d bought it outright.

@neonpaintsplash

4 жыл бұрын

JoeAceJR, hows that service? I’m genuinely curious.

@codorin

3 жыл бұрын

@@IJoeAceJRI you would be surprised in Canada. most palns are near $100/month or more. we have the highest celluar service costs.

Sprint and T Mobile offers a plan on a single line for under 45 dollars a month. I was paying $85 before on a single line. Just go prepaid on big cell phone companies and it will give you great service while you save money.

I got iPhone 11 Pro Max at 0% interest. So instead of paying £1000+ outright I’m basically doing it monthly. Would you still class that as debt? I’m thinking on paying it off ASAP but considering it’s 0% APR I’m happy to keep paying £45 monthly payments

Thanks for this video Dave just paid off both my fiancés iPhone and mine.

We have two LG android cell phones. Prepaid AT&T ones. Got them during black friday for $30 each. That's it. Normally $60 each. Been using them for years.

Go to Best Buy and buy the phone outright and get the SIM card for whoever you carrier is.

There is never interest on ATT or Verizon’s payments. A better question though is if we should “finance” the phone (no interest or fees for doing so) if they charge you $33.34 for the phone and then credit you 33:34 a month as a credit (promotion)? Promotional phone!

People are really worried about what is debt and what is not! As long as you are on a steady track to grow you shouldn’t need to take out debt. Also they should just buy the phone outright and not do payment plans

Making payments for services and consumables (like cell phone service) are considered an expense, like your internet or electricity bill. Making payment on a tangible asset whether it be a car, house or a phone is debt.

@whitegoodman7465

2 жыл бұрын

Paying for a cell service for data texting and calling is a service, not paying off the phone monthly.

Ya, I had my phone in a 2 in a contract for 60 cad/month. Paid that sucker off and now my plan is 17.5 cad/month. Everyone paying for phones, I don't know anyone that has this cheap a plan in Toronto, which is where I live.

Phone payments are debt, but there is no interest. I worked for AT&T and Verizon and neither charge interest. I can’t speak for whatever company the wife went through, though.

@erickabundis7952

4 жыл бұрын

Dr. Johnny Sins exactly

At least in Canada, it's very rare to see a financed phone that costs you more that 0%. I mean, most companies charge 0% interest and give you $100 off the purchase price, and Canadian law doesn't allow for sneaky buy-out clauses in cell phone contracts. Honestly it sometimes makes sense to pay off another debt first in that case. Definitely if you're paying interest on it!

I’m missing something here. I’ve never paid interest on any cell phone I’ve ever added to my plan. An $800 phone is $33.33 per month for two years, that’s $800. Call me weird but using someone’s else’s money for two years? Why not?

@---cr8nw

3 жыл бұрын

That was my thought. As long as there's no interest, you're actually coming out a little bit ahead by paying it over 2 years. The rate of inflation doesn't apply to a product that you've already bought.

@carstuff4u942

3 жыл бұрын

Agreed !

@miriam1449

3 жыл бұрын

I think it depends on your carrier. When I was with Verizon’s (back in 2011-2012) I paid $95 monthly for unlimited talk and text and very limited data. With straight talk I pay $45 monthly for unlimited talk and text and 25G of high speed data. I don’t know how carriers are now but given my above figures, I saved $4,800 in 8 years and a bit more because I switch to the $35 plan when I was getting out of debt.

@raiden031

3 жыл бұрын

As Dave always says, you're not solving a math problem, it's a behavioral problem. First, you might not buy a phone so expensive if you have to pay upfront. And second, you may not make other purchases that you don't need after forking out several hundred dollars for a new phone.

Used to have a smart phone, switched to a tracfone two years ago to save $ right now. Can't afford the others right on my current salary.

Switch to prepaid phone plans and buy the phones outright and unlocked to use on any carrier. You save thousands. When you finance a phone, not only is the cost per month added to a plan, but, you also have to choose the most expensive plan to qualify for that phone. If you think I'm wrong, look at the so-called "deals" on phones. They specifically state "with a qualifying plan". Translated, that means, the expensive plan.