I am an international student studying in Melbourne. When i came here 6 months ago i had signed up for a $49 Cap contract for 24 months offered by a mobile company along with a new handset worth $500. I have paid my bills promptly for last 6 months..now i am going back to india due to some personal problems. I called up the customer care and they said i have to Cough up around $600 to terminate the contract. I cant afford paying $600.
What will be the present/future consequences if i dont pay as i may come back to australia few years down the line.. please help me asap..
Interesting question. Readers in the U.S. will be surprised by this question and answer. In the U.S. you can pay an early termination fee to get out of the contract. Typically, $175.
In Australia and the UK, where I lived, you can’t do that. In the UK the cell phone, mobile phone, companies require you to pay the entire balance of you agreement and there is no early termination available, at all, period. When I moved out of the UK I still had to pay for service that I couldn’t use. Same with most internet providers as well.
For your phone contract in Australia it sounds like they are giving you a break since your remaining contract would actually cost you $882.
If you don’t pay it all it will go to collections and the amount that you owe will grow. You might be sued for the debt in Australia and that could potentially hurt you if you are asking for any future permanent residency status when you return. Also, when you return the collection of the debt will most likely resume, but you’ll a lot more by then.