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How much does that free phone from your mobile carrier really cost?

If that smartphone offer sounds too good to be true, it might be - or it might not. How do you tell? Watch out for these seven gotchas that can drive your costs way up.

If you trade your phone for a newer model or switch carriers before the promo period is up, you forgo any remaining credits and you're required to pay off the balance out of pocket. Apple occasionally offers meaningful discounts on its iPhones, and the price after a trade-in might be good enough to consider, especially when you factor in the savings you get from sticking with a lower-cost legacy plan. The exception to that rule is usually when a new smartphone model comes out; during those brief windows of upgrade opportunity, you might get offered higher-than-market-rate trade-in allowances to induce you to buy.

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