The most important thing about debts due to cell phones
- Most people with mobile phone debt are not older than 25 years.
- If several invoices have not been settled, you should contact the respective provider as soon as possible in order to discuss the possibility of installment payments.
- If you want to prevent mobile phone debt, you should opt for prepaid rates.
The mobile: From the status symbol to the debt trap
Cell Phone Debt: Avoid overpriced rates with fixed maturities.
The mobile phone has made a steep career over the past few decades. The first real phone, the Motorola DynaTAC 8000X, weighed about one kilogram and cost nearly $ 4,000 . Today, a smartphone replaces the laptop, the camera, the MP3 player and much more.
Most people today can no longer imagine a life without a mobile phone . According to the Federal Network Agency, there were about 132.4 million subscribers in German mobile networks in the second quarter of 2017.
The mobile phone has also become more and more a status symbol . If you want to be cool, you must constantly have the latest device on the market. In addition, video and music streaming put a strain on the data volume – which can be expensive. Cell phone debt is becoming an issue for more and more people. But how does it happen and what can affected people do?
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Young people in particular are making debts with their mobile phones
More and more young people under 25 are over-indebted. Their debts are on average 7,450 euros much lower than those of the elderly. What is striking, however, is the following: debt to telephone and Internet providers accounts for more than 18 percent of total debt. For older debtors, it is only 2.6 percent.
Mobile debt is thus the way to over-indebtedness for many young people. But why is that? Teenagers and young adults often see the phone as a status symbol. To get the latest model, they often sign contracts that include the device. However, these are bargains only at first glance. On average, the phone is at the end much more expensive than the direct purchase.
Long maturities also increase the risk of accumulating mobile debt. For one thing, you are bound to the contract for a long time and therefore have to bear the costs incurred until the end of the month. On the other hand, you are less flexible and can not switch to a cheaper provider in a timely manner.
Mobile debts: What can I do?
Parents should educate their children about the ” debt trap cell phone” in good time.
Cell phone debt is by no means a negligible problem. If those affected do not pay their bills, they can be sued by the mobile network operator.
If you have not paid your liabilities in the past , it may be advisable to contact the provider directly . You may be able to pay off the debt in installments if you are unable to settle them in one fell swoop .
Do the cell phone debts get over your head? In such a case, the help of a professional debt counseling is advisable. Debt relief will give you a thorough overview of your financial situation and a plan on how to get out of debt as quickly as possible.
Avoid Mobile Debt: Tips to Avoid Debt Traps
The debt trap mobile phone often snaps faster than it is the afflicted ones. The following tips do not put you at risk of accumulating mobile phone debt:
- To be on the safe side, go with a prepaid offer . This will not incur any debts and you have full control over the costs.
- If it is to be a contract, this should have the shortest possible duration. So you stay flexible if you find a cheaper rate.
- For students, apprentices and trainees, there are usually favorable special rates .
- Be careful not to book expensive additional options if you want to avoid mobile phone debt.