How to Replace a Phone without Breaking the Bank

When the latest iPhone, Samsung, and Google flagships cost more than $1,000, buying a new phone is a carefully orchestrated financial decision. Except, you can’t always decide when you need a new phone.

Catastrophe can strike at any time; you leave your Pixel behind in a cab, drop your iPhone in the toilet, or crack the screen of your Galaxy into smithereens. The next thing you know, you have to replace your phone months — or even years — ahead of schedule.

Replacing a lost or broken phone can be financially challenging, especially so soon after the holidays. If you aren’t sure how you can handle this new expense, this guide is here to help.

Leverage Any Phone Credit You Have

Check in with your phone financing through your cell provider. If you’ve been paying off your last phone for several months, you might have some credit to apply to a new phone.

This won’t cover your entire new phone unless you have already purchased your mobile outright, but it can help lower your costs significantly. Don’t be afraid to talk to your provider and ask what they can do to help you.

Tap into Your Emergency Fund

Your emergency fund was made for this situation. If you have the savings, now’s the time to withdraw them to replace your phone.

If you don’t have an emergency fund, sit down with your budget to see how you can start saving every month. Your contributions don’t have to be enormous, just consistent. Try to save the same amount each month, no matter what.

Put Your Purchase on a Line of Credit

According to this definition of a line of credit, it’s a safety net when you can’t afford unexpected personal expenses on your own. It’s a type of loan that offers more flexibility than your typical installment loan when you aren’t sure how much money you’ll need; you can borrow as much or as little as your approved limit, with no requirement to draw the whole thing.

A line of credit also comes with a different repayment structure, too, wherein interest only accrues on the amount you use. While you should pay it off as quickly as possible, you have the option to cover minimum payments until you can afford to pay more. This can come in handy if you can’t pay off your phone in one lump sum.

Look at Older Models

While you might want the Pixel 8 Pro, it’s one of the most expensive handsets out there today. You can find a phone that costs a fraction of that price if you’re willing to look at a new budget or older flagships.

You don’t have to give up on processing or camera specs. Check out these tips for shopping from older models. They’ll help you get the phone you need without drawing more than you have to on a line of credit.

Buy Certified Pre-Owned

Buying certified pre-owned is another great way to save money on your next device. You can even find pre-owned flagships like the Pixel 8 Pro at a discount this way.

Keep in mind the distinction of certified pre-owned. This label means the phone has been used before, but it has gone through extensive testing to ensure it works to factory standards.

Unlike basic used phones — or phones that have simply been used and resold by someone before you — certified refurbished or pre-owned devices come with a guarantee that they will work.