How to Get Out of a Contract Without an Early Termination Fee

Canceling a cellphone contract usually triggers a stiff early-termination fee -- in the neighborhood of $150 to $200. The thought of paying several months' worth of cellphone service bills just to terminate cellphone service keeps many cellphone users trapped with the same provider, even if they're unsatisfied with the service. There are ways to get out of your cellphone contract without incurring an early-termination fee.

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You may be able to get out of a cellphone contract without paying a huge penalty.

Step

Contact your cellphone provider. If you are under financial hardship such as a job loss, explain your situation. Many times, wireless providers will work with you to lower fees or help you switch to another plan to avoid an early termination fee.

Step

If your cellphone provider is unwilling to work with you, register with an online cellphone contract exchange website such as CellTradeUSA.com or MobileCellOut. Some sites are free, and others take a small fee to sell or trade your cellphone contract. This way, your contract is not canceled and you are not required to pay an early termination fee.

Step

Talk to your friends and relatives about your cellphone contract. You may find someone who is willing to take over the phone and payments. If you do, contact the service provider through its website or customer service number to arrange the contract transfer.