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Payment Program Promotion Credit - Actual Monthly Payment

I'm a participant level 1
I'm a participant level 1

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I am confused about my actual monthly payment. I have seen some very informative posts about on this forum by @Cawtau about this topic, but I am still unclear about some things.


I know that the the full cost of the phone is  $1730 and that the Fido Payment Program is a financing program that spreads the cost over 24 months. If you divide 1730 by 24, you get roughly 72 so thats where the $72 is from. I also see that there is a roughly $42 credit, and without that credit my "Total monthly fee after tax" would be around $126 rather than $84. 


My first question is, how much would I actually be paying monthly? $84? $126? My second question only applies if my actual monthly payment is $84. My second question is, after 24 months, is the phone completely payed off? Or do I have to pay off the remaining $1010 because I would only be contributing $30 per month to the balance of the phone. In other words, does the $42 credit actually contribute to the balance of the phone? My third question only applies if the phone is payed off after 24 months. My third question is, what is the incentive of offering the phone for ~50% of the price? My only guess is so that people don't prematurely pay off their phone balance and switch to a competitor, as they would not get the credit elsewhere.


I appreciate anyone that help me out here




Senior MVP Senior MVP
Senior MVP

Hello Levitski,


  Welcome to the community!


  That does sound like a good deal for that phone! With the bill credits, you would actually be paying $84 per month (plus any additional charges ie long-distance, roaming etc) for the duration of the contract.


  As I have mentioned previously in other threads, the monthly cost of the phone remains the same but customers are getting a credit on their bill to offset the cost of the phone. So the bill credit indirectly contributes to the balance of the phone. As long as you remain with the contract, the cost of the phone will be offset by the bill credit. However, if you end the contract prematurely, you would be required to pay the balance of the device ($72.09 x remaining months) plus taxes. The remaining bill credits would no longer apply. Once your contract has completed, your phone would be paid off. You would no longer have a monthly financing cost. You would also no longer receive that bill credit.


   The different providers often have various promotions (some targeted; some for everyone). The Payment Program bill credit is just one such promotional offer.


Hope this helps 😀