You have to fulfill 50% of your contract before you can upgrade every year. What i usually do is pay off the remainder of my installment payments in August of each year so that I am eligible to upgrade. Then I actually have another forum member who buys my phone, so then I pay all of the remaining payments so I don’t owe ATT anything. But really in order to upgrade all you have to do is pay off 50% of your installment payments and then if you want to turn the phone in you have to send it back to Att or if you want to sell it to someone else like I do then you just have to pay off all of the installment payments which is what I do. Hope this makes sense