Be aware of early exit fees - especially if you want to switch!
Recent research has shown that lots of people are in the dark about these fees - which could be costing them dearly.
If you have recently signed up to a 12-, 18- or 24-month contract for any essential household utility or service, the chances are your contract stipulates some kind of early exit fee for leaving before that term is up.
However, research from Switcher.ie has found that almost three-quarters of us either don’t know if we’d pay a penalty for cancelling phone, broadband and energy contracts early, or are unsure of how much the penalty would be.
How can you avoid early exit fees?
Not being aware of these penalties could be costly, as an investigation by Switcher.ie has shown fees can be hundreds of Euro, depending on the provider or service. So what can you do to make sure you don’t get caught out?
Well, firstly you should make a note of the date you sign any contract, including details of the minimum term and the early exit fee for cancelling the contract before then.
Not only will this help you to avoid early exit fees, it will also serve as a reminder to you to shop around and see if the deal you’re on is still the best one for you. For most contracts, the minimum term is also the period that your discount lasts for - so when this is finished it’s the perfect time to see what other plans are out there.
For most energy contracts, early exit fees are 50 Euro per fuel if you cancel within the minimum term. Meanwhile, lots of broadband and phone contracts require you to pay out the remainder of the contract if you cancel before the end of the minimum term.
However, if you are having problems with your service, or your provider is not meeting the terms of the original contract, you may be able to switch without incurring a penalty at all - so it’s worth checking that out.
Getting the best deal
The main thing is, if you’re aware of how much the early exit fees are on your contracts, and when your minimum term ends, not only can you avoid hefty charges, you can make sure you’re getting the best deal, too. The average dual fuel customer can save up to €360 per year by switching to the cheapest deals so it’s definitely worth making the move.