Monthly Archives: September 2014

Want to go Contract Free? – Best used smartphones to buy

The John Legere Uncarrier revolution has turned the wireless industry on its head.  Whether you are a big fan of T-mobile or not, you have to thank John Legere for reducing your wireless bill and finally putting the customer in control.  You now have the option of walking out on your contract and have the Wireless companies bend over backwards to try to keep or gain you as a new customer.  This has been an extremely shady industry where the Customer Service Reps pretty much tell you anything over the phone, mess up your account and leave you holding the bag.   This has happened to all of us.  Hopefully this uncarrier revolution continues to make changes for the better.

The US cellphone industry is slowly heading on par with Europe and the rest of the world.  Buying phones and phone service in those countries are 2 separate transactions.  The phones are not tied to a carrier and you are free to move from one carrier to another – just switch the SIM card and you are good to go.  GSM companies always used a SIM card and going forward LTE is going to be SIM card based.

What this will do is also create a very healthy secondary market for the used Cellphones.  We have already seen some of that with the launch of iphone 6 where companies like Gazelle no longer had the monopoly of purchasing that phone from you.  Companies are now tripping over each other to offer you the highest trade in price for the cellphones.

One company that you should consider for selling and purchasing your phones is swappa.com.  It does not get much attention but that site brings buyers and sellers together and charges a very small fee for using their marketplace.  The seller on Swappa pays a flat $10 sale fee and the paypal fees (of course!) .  I have bought and sold stuff on swappa with very good results and I have saved a ton of money as I did not have to pay the high Ebay or Amazon fees.   As an added bonus swappa does a verification of the IMEI number prior the posting of the phone – something  Ebay and Amazon just do not do.  Swappa will not advertise the IMEI number on the site after verifying that the IMEI is clear..  This verification keeps the unscrupulous  sellers out of the swappa marketplace.   It is safer to purchase phones on swappa.com than Amazon, Ebay or Craigslist.  Swappa also handles the transaction post sale and will work with the buyer and the seller,  if there is an issue with the phone.   That is a whole  lot of value for a  small $10 fee.

( Disclaimer:  I am not affiliated with Swappa in any way)

So what used Smartphones should you purchase

1) Verizon iphone 5s:   It is running about $380 on Swappa.com and that is nearly half of what it sold for 1 year ago.  The advantage of the Verizon iphone 5s is that is factory unlocked and will work on  Verizon, AT&T, T-Mobile and any other GSM carrier.

2) Nexus 5 :  This phone is running about $280 on Swappa.com and the price is dropping fast.  The Nexus 6/X  is right around the corner.  This is a pure android phone and does not have any modifications to the software.    This phone is fully unlocked and will work on all GSM carriers like  AT&T, T-Mobile.  It will also work on Sprint affiliated CDMA carriers.  For some reason Verizon decided not to support this phone.  I am hoping that Verizon supports the Nexus 6/X.  That would make it the first phone where a single version of that device is capable of working on every US Network – true network freedom.

3) Any Verizon LTE phone: Verizon  reached an agreement with the FCC that any of their LTE phones would be fully unlocked.  If the Verizon phone has LTE bands and has been activated on the Verizon Network – it will work on AT&T, T-Mobile and all other GSM carriers.

Caution: If the Verizon LTE phone is brand new and has never been activated – it is still locked to Verizon.  The phone gets unlocked after it is activated on the Verizon Network, the first time.

short link to this page http://wp.me/p4hPz0-4k

Think twice before you get the Sprint iphone 6 or Iphone 6 plus

Update:

Sprint on 2/11/2015 did an about turn and decided to unlock iphone 5c, 5s , 6 and 6 plus.  This was counter to what they had been professing all along.

Sprint still refuses to unlock the iphone 4s and the iphone 5.   

Rob Pegorara @ Yahoo tech wrote an article on which carrier has the best deal on the iphone 6 with 2 GB of data  (https://www.yahoo.com/tech/iphone-6-plans-compared-at-t-verizon-sprint-and-97601904249.html) Rob did a great job of analyzing different plans and determining which carrier to go with.  Rob however does not take into account the Residual resale value of the iphone 6. No one really knows what the residual value will be down the road.  However, the Sprint iphone 6 or 6 plus will have the least residual value because Sprint will not unlock the iphone 6.  I would highly recommend that you take that into account when you are deciding on your iphone 6 AT&T and T-mobile iphones are portable once unlocked and can be used on each others GSM networks.  The Verizon iphone is GSM unlocked and can be used on either the T-Mobile or AT&T network once it is has been activated on the Verizon network.  The Sprint iphone 6 has the GSM bands to work on AT&T and T-Mobile but Sprint will not unlock the iphone. Sprint is a completely different story.  They will not unlock the phone – read my blog on

Sprint – Do the ethical thing and unlock our Contract free iphones

Sprint in their unlocking policy clearly stated that  “Sprint is working to ensure that all devices developed and launched on or after February 11, 2015, are capable of being unlocked domestically.” Since the iphone 6 was launched on September 19th,  2014, it will not be unlocked by Sprint.  

What does that mean to you

1) That phone will always be tied to the Sprint Network 2) You cannot take that phone with you, if and when you want to leave Sprint.  Sure, you can take the iphone with you, it will just be a very expensive ipod! 3) You can try selling/trading it but because that phone is not portable,  it will always have the lowest resale value. Rani Molla wrote an excellent blog on Where can you trade in your iPhone for the most money?.  If you see the graphic in the blog,  you will notice that the Sprint iphone consistently has the lowest resale value. Like I said – think twice. Update – the New iphone 6 bursts all the myths in Sprints unlock policy.  You can read all about it here     store.apple.com/us/browse/over short link to this page http://bit.ly/1xeZznw

Math Tax #1 : Bi Weekly Mortgage Payments are a Ripoff

This blog is part of the Series I am writing to expose Corporations whose entire business revolves around “taxing” people who are bad at Math.     These companies have great marketing and play on peoples emotions  however they are not doing anything that  you could not do on your own.

Why Bi-Weekly mortgage payments is a horrible idea…

Sign a new mortgage and you within a few days you get a letter in the mail saying that you can payoff that mortgage faster – in 23 yrs vs the 30 year note that you just signed.  The company is playing on your emotions.  Yes you have signed a 30 year note and yes you are extremely concerned as this is the most expensive thing you have bought and now you have a monthly mortgage you have to cover .  Paying it off 7 years early sounds awesome  Now lets look at this and see why this is really bad idea.

There are 52 weeks in a year.  The company is collecting every 2 weeks, that equates to 26 half payments.  Twenty six  half payments  equates to 13 full payments.

52 weeks paid bi-weekly = 26 half payments

26 half payments = 13 full payments

You required to pay 12 monthly payments for your mortgage and bi going the bi-weekly route you are making 13 monthly payments.

But that is not all of what you are paying out of pocket – In reality you are paying more.  There is a setup fee of $300 – $400 and a monthly process fee or $6.  So the first year – you pay an extra $372  in fees  just so you can make 13 payments instead of 12.     Are you kidding me?

You can make that 13th payment just on your own – all you have to do is write (principal only) on the check so they don’t put the money in your escrow account.

Take the $372 and enjoy it with your family…

Why make any the payments to this company?