Broken down perfectly by an engadget user 
infotech032510 hours ago
For this example we will assume that Bob has the Galaxy S4 which currently retails at Verizon for $599.99. Bob has decided that the Galaxy Note 3 ($699.99) better suits his needs because it has a bigger screen and a stylus. Bob decides to take advantage of Verizon's Edge program. In order to use the Verizon edge program Bob must have at least 50% of his Galaxy S4 paid off ($299.99) before he can trade it in. Bob must also pay monthly installments on the Galaxy Note 3 for 24 months. So Bob will have paid $299.99 + $699.99 at the end of two years. Had Bob chosen to pay the $699.99 for the Note 3 and then sell his Galaxy S4 through Craigslist or Ebay for $300, he would only have $399.99 into his new Galaxy Note 3. However, since Bob used Verizon's Edge program he now has paid $999.98 over two years which is a difference of $599.99. So what is the point? You might as well call it interest! How much interest is it? Well lets see... r=i/Pt
r = 599.99/(699.99(2))
r = 599.99/1399.98
r = 44.85%
So a 44.85% interest rate... If I told you that I would sell you a phone on payments for 44.85% interest, would you be eager to jump on it?
http://www.engadget.com/2014/01/19/verizon-changes-edge/#comments
infotech032510 hours ago
For this example we will assume that Bob has the Galaxy S4 which currently retails at Verizon for $599.99. Bob has decided that the Galaxy Note 3 ($699.99) better suits his needs because it has a bigger screen and a stylus. Bob decides to take advantage of Verizon's Edge program. In order to use the Verizon edge program Bob must have at least 50% of his Galaxy S4 paid off ($299.99) before he can trade it in. Bob must also pay monthly installments on the Galaxy Note 3 for 24 months. So Bob will have paid $299.99 + $699.99 at the end of two years. Had Bob chosen to pay the $699.99 for the Note 3 and then sell his Galaxy S4 through Craigslist or Ebay for $300, he would only have $399.99 into his new Galaxy Note 3. However, since Bob used Verizon's Edge program he now has paid $999.98 over two years which is a difference of $599.99. So what is the point? You might as well call it interest! How much interest is it? Well lets see... r=i/Pt
r = 599.99/(699.99(2))
r = 599.99/1399.98
r = 44.85%
So a 44.85% interest rate... If I told you that I would sell you a phone on payments for 44.85% interest, would you be eager to jump on it?
http://www.engadget.com/2014/01/19/verizon-changes-edge/#comments
People don't realize how bad cellular companies are trying to rape consumers, no lube.
"come to me"
good off this LTE.
