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Paying Tab Early Clarification


Just to clarify…

If I pay my Tab off after the initial 90 day period my monthly payment would then go down to the rate plan only, correct?

And I still have the balance of two years to fulfill on the contract after which the Tab Bonus is done and I own the phone outright..

Am I understanding this correctly?

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Best answer by Allan M 4 May 2021, 20:12

@Allan MJust to clarify, I wouldn’t pay the Tab Bonus as an extra payment, it would simply decrease each month the same as it would had I not paid the Tab Balance.

I know this is probably simple, but I need to make sure. I appreciate your help.

Correct, it will decrease by equal payments over the 24 months in the background and you only have to pay back the balance if you get a new phone on the tab or cancel the account.

And not a problem, always good to be aware of what you're getting into!

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Userlevel 7
Badge +4

That's right. But you'd also have to pay off any subsidy on the tab that you wouldn't by leaving it to pay over 24 months.

 

Sorry… balance of 2 years to pay first?

Userlevel 7
Badge +4

I am not sure what you mean, Norm. If you pay off the tab before the two years are over, there won’t be any balance left. BUT, you may have to lose all the bonuses and other discounts that you received on your phone.

The only time people usually want to pay off the tab prematurely is if they want to buy another phone, or want to leave Koodo. In all other cases it would make much more sense to just continue paying it off each month.

Edit: oops, posting too slow, what Goran said :grinning:

So if I pay the Tab off early I also have to pay off the Tab Bonus? I thought the Tab Bonus would decrease on its own as I pay my monthly rate plan and after two years would be at $0.

My intent is to stay with Koodo but keep my monthly payments within a set budget.

 

Userlevel 7
Badge +4

So if I pay the Tab off early I also have to pay off the Tab Bonus? I thought the Tab Bonus would decrease on its own as I pay my monthly rate plan and after two years would be at $0.

My intent is to stay with Koodo but keep my monthly payments within a set budget.

Correct, you will only have to pay off the tab bonus if you get a new phone on the tab or cancel before the 2 years is over.

@Allan M Just to clarify, I wouldn’t pay the Tab Bonus as an extra payment, it would simply decrease each month the same as it would had I not paid the Tab Balance.

I know this is probably simple, but I need to make sure. I appreciate your help.

 

Userlevel 7
Badge +4

@Allan MJust to clarify, I wouldn’t pay the Tab Bonus as an extra payment, it would simply decrease each month the same as it would had I not paid the Tab Balance.

I know this is probably simple, but I need to make sure. I appreciate your help.

Correct, it will decrease by equal payments over the 24 months in the background and you only have to pay back the balance if you get a new phone on the tab or cancel the account.

And not a problem, always good to be aware of what you're getting into!

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