Are Cell Phone Payment Plans Considered Debt?
Brett is in Columbia South Carolina Hi Brent. Welcome to the Dave Ramsey show. Hey Dave Hey Rachel. Hey, what's up to my question for you today is me and my wife we've been working the baby steps. Baby step two, but we've come to a point now where we've got kind of a fork in the road it's basically, we're looking at our cell phone bill and we're wondering if we should go ahead and pay off our cell phones to lower our bill from about two sixty a month to one, ninety five or if we should take the six hundred and eighty dollars that it's GonNa take to pay that off to pay off another debt, which is six, hundred, ninety, two dollars. So, it's we're like, right they are added and I'm just like you know I see the financial advantages of lowering our monthly bill. But at the same time I'm like we can go ahead and knock out that debt and be out of it. Well, you got to pay it off this time time right? We're not gonNA keep the phone debt right? Right, right no. No, and actually as both for cell phone six, hundred, eighty, two dollars. That is the debt that we owe you know is is actually where my wife bought a new cell phone last year. Okay and she financed it through an outside company, the the six, hundred and eighty. That's that were kind of like paying. Views both of them are debts. Both of them are cell phones. And both of them are around six hundred and eighty dollars. Why would you just not pay both of them off? Well, that's what I'm asking is it's The cell phones that were paying through at and T.. It's part of our service contract and we're paying it through our service contracts and it's you finance moths at and T. Your wife financed her cell phone with one outside of at and T.. Correct. They're both debts. Okay. So you're saying it doesn't matter which one you pay off because in the end you're going to be paying off. One album anyway at the rate you're. Down you're probably GONNA, pay them both off this month. Aren't you? Doing anything that's not male band. been doing good. All right. Michigan now is that does that answer your question? Is that what you're wondering? Yeah I go I just didn't know. I figured. I, guess. Probably. Yeah. This is the this is the evil part of a t and T in verizon and so forth. Okay. When they finance your cellphone into your phone bill, you don't think of it as debt. Right yeah, and that's that's that's the great mystery of how they pulled pulled that wool over our eyes. It's soil debt. You still borrowed money as opposed to when I get a cell phone they're either giving me one because of the contract were on or I'm paying for it. Right. Then when I pick it up, one of the two it's going on you know we're we're paying for to mmediately. So we don't finance cellphones over on payments whether it is with the cell phone company or with an outside party, and it shouldn't you have. Then we're just going to get rid of that. They've changed over the past couple of years where it's like Kinda this like finagled thing within your bill, it is and it can be very, very confusing. So intentionally confusing hundred percent. Totally. To finance it, and they totally don't want you looking at the interest rate they totally don't want they just WanNa make it easy for you. Easy for it. That's what they want. Yeah beware of those people man I'm telling you just like anybody's GonNa make it easy. Yeah. That's problem.