Tab repayment

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  • Updated 2 years ago
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I recently went to pay a bit of my tab off as I was told I could by the person I activated with and I now see that the only option is to push the whole tab balance to my next bill. My tab is $280 and I was looking to just put an extra $15 a month on there. My question is this, if I put an extra $15 in will my bill payment will the extra amount be put on my tab? For example my bill is $65.20 so if I pay $80.20 when I pay my bill will my bill have a credit for next month or will my tab go down an extra $15?
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Robert LePage

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Posted 2 years ago

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Goran, Mobile Master

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Unfortunately it's pay it off monthly as agreed or pay it all off. Anyhow extra you do will show up as credit for the bill in general and not go towards paying down the tab quicker. You can always just set aside the money in a bank account an let it grow interest or investment or something in a TFSA until you get however to pay the rest of the tab off.
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Robert LePage

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That is exactly what I was thinking. was just hoping that I could just pay it thank you for the resposne
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BobTheElectrician

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Koodo's system is not set up to accept partial payments against your tab balance. You will end up with a credit.

The tab is basically and interest-free loan to fund part of your phone purchase, so there is no incentive to pay it back early. It's a bit of a shell game. ;-)

Your overall cost over the next year is (TAB + monthly plan) x 12.

If you were able to pay down the tab, you would be paying (TAB + monthly plan+ 15) x 12 = $180 more, but end up with a credit of $180 against the tab.

If you really decide just to put an extra $15 into your overall phone payment, you still end up with a credit of $180, but it's against your plan. Seems a little less appetizing to go on paying at the point where you have enough of a credit balance to cover next month's bill.

If you decide to switch out or upgrade, the end result is the same. You still have a $180 credit against your final invoice which is what counts in the long term.

May as well keep the money in your pocket as Goran recommends.
(Edited)
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David, Mobile Master

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Here's what your $15 per month in a TFSA might look like.......
(Edited)
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Chadwick, Mobile Master

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I was told the exact same thing upon signing up with Koodo. What I was told by a rep was to pay a little extra per month like you suggested and when you get enough of a credit on your account, just request your tab on the next bill and it will automatically take it from your built up credit. There's no rush or reason to pay it off fast unless you plan on leaving or just want that debt paid off. Whatever option you chose will work, just depends how you look at it
(Edited)