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When you get a new phone at an extreme discount through a contract for service, you usually end up paying for that phone several times over by the time your contract is up. Cell phone prices can frequently seem artificially cheap because of the expensive contracts people get into with the carrier that gives you your phone.

When you look at a phone's price, check with the carrier to see if there is a cheaper plan available for someone who buys the phone without a subsidy. Take the monthly difference of that plan over the life of your contract when considering price.

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