can I put an extra payment on my tab? If so will this shorten months payable or lessen the monthly tab payment?

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Paying down the Tab with some extra cash. Is it possible to make a payment on the Tab balance , and if so will this shorten the time left on the tab and keep monthly payments the same , or will it keep the time the same and lessen the monthly payment?
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Stewart Wood

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Posted 3 years ago

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Chad Burr, Mobile Master

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The only time you ca pay more for the device is when you initially get your phone. After that it's an all in or monthly, you can't make additional tab payments.
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BobTheElectrician

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There is currently no way to make a bulk partial payment against your tab or alter the monthly payment sort of paying it off 100%.

I have done the math/arithmetic, and generally the Koodo folks have done their homework in terms of cash flow.

If you were theoretically able to throw an extra $100 at your $300 tab (on the old plan), you might end up paying about $20 less TOTAL after two years. Sounds like Koodo should be listed on the bond exchange, but you would have disbursed over $1300 over 2 years to earn your $20 on an extra $100.
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EmilX

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I don't follow how you would end up paying $20 less if you throw a hundred dollar lump sum on what you have outstanding. I thought this is like an interest free loan. Why would anyone want to pay that off sooner than they have to? Leave the extra money in the bank and you will make more that way.
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BobTheElectrician

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Maybe badly explained. But if you insist...

Assuming you are on the old tab system, where Koodo kicks in 15% of your bill and you pay an extra $5 per month and have a balance of 300 to start:

If your monthly plan is 50 : you pay $5.00 + 50 = 55 and your tab of 300 decreases 5 + 7.50 per month = 12.50, so you own the phone after 24 months = 5 x 24 = 120 out of your pocket for hardware + 50 x 24 for service = 1200 + 120 hardware = 1320 : 55 per month for 24 months.

Theoretically, on the same monthly plan of 50 + you throw another 100 into the tab balance : you pay $5.00 + 50 = 55 and your tab of 200 decreases 5 + 7.50 per month = 12.50, so you own the phone after 16 months = 5 x 16 = 80 + 100 = 180 out of your pocket for hardware + 50 x 16 for service = 800 + 180 = 980 = 61.25 for 16 months. The next 8 months would have been at 45 (50 less 10% discount for BYOP) : 8 x 45 = 360 + 980 = 1340.

It’s not a bad return for 100 placed over 24 months ($20 earned) but not enough to get Koodo listed on the bond market yet.
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EmilX

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Very good! Got it now. On my tab I pay nothing extra a month. Koodo just contribute the 15%. That is what I was thinking.
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BobTheElectrician

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In any event, this is theoretical. Can't do a partial payment anyhow.
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Chad Burr, Mobile Master

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It's kinda irrelevant anyway since you cannot make partial tab payments period.

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