Smartphone users given an extension to pay off their devices

MOBILE phone customers are being given longer periods to pay for the devices to cope with the soaring prices of handsets.

SMARTPHONE users burdened with the cost of nabbing the latest devices have been given a reprieve as telcos stretch out the time they have to pay for handsets.

The latest and fanciest devices are sure to leave a dent in the wallet — for customers to get their hands on the latest iPhone X they’ll need at least $1579 while to get the Samsung S9+ 64GB devices start from $1349.

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But the payment blow has been lessened for customers — many of whom don’t pay for devices in full — with repayment terms being pushed out to 36 months instead of the traditional 24 months.

Smartphone users can sign up to 36 month phone deals.

And customers won’t pay any extra to have a longer period to pay off the device, they’ll just pay the same amount in smaller increments.

Vodafone and Woolworths are among those offering these longer deals but telco comparison website WhistleOut’s spokesman Kenny McGilvary said there are pros and cons.

“If you want to have a lower monthly payment and are happy to stick with the same handset then yes they are a good plan because you can manage your cashflow better,’’ he said.

“But if you are someone who likes having a newer phone in your hands then it locks you in.”

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Vodafone’s consumer business unit director Ben McIntosh said the telco has “ripped up” old-fashioned 24-month phone contracts and replaced them with 12, 24, or 36-month payment plans for devices and month-by-month usage deals.

“For 30 years it’s been sign your life away for two years and you can’t change plans, if one of the big boys brings out a new plan you can’t switch to that because you are stuck,’’ he said.

“With us you take your smartphone of choice and pay for it interest free over 12, 24 or 36 months.”

Phone customers do not always need to upgrade their phone every two years.

Mr McIntosh said customers can pick a month-to-month plan to marry up with their handset and if they do decide to switch carrier they literally pay out the remainder owing on their device without being stung with early payment fees.

Supermarket giant Woolworths which has piggybacked onto the Telstra network also gives phone customers the option of paying off devices including Samsung, Motorola or Oppo phones over three years, starting from $32 per month.

Longer payment plans are reducing the monthly amounts due on smartphone payments.

Their head of mobile James McMurrough said the 36-month deals started late last year because customers were holding onto the phones for longer than two years without wanting an upgrade.

“It was clear to us that not everyone wanted or needed the newest handset every two years, so we set about building more flexible options for customers,’’ he said.

“Our 36-month plans have proven popular with customers who want to spread the cost of a handset over a longer period of time and reduce their monthly phone bills.”

Customers can also update their mobile plan inclusions every six months to make sure they are on the right deal.

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Originally published as Smartphone users given an extension to pay off their devices