Sorry if this is long:

About a month ago my mobile phone needed repairs that I was told by Carphone Warehouse would cost £80 so I decided to buy a pay and go handset and just put my contract Sim card into it which would work out cheaper.

I went to the Carphone Warehouse and told the salesman what I wanted to do and he said he could do me a deal that wouldn't cost me anything. In short I was talked into a cash-back deal where I would get £200 which I was told would buy me out of my current contract and signed up to a contract with Orange at £40 per month with an LG Cookie phone.

The following day I phoned my current contract provider O2 (through carphone warehouse) who said it would actually cost nearly £600 to buy myself out of my contract! I then phoned Orange (through carphone warehouse) asking if I had a 'grace period' if I didn't want to go ahead with the contract and they said no.

I returned to the Carphone Warehouse store and told them that I was assured that the £200 cashback would buy me out of my O2 contract and they said as my O2 was a cashback contract (where I send my 3, 6, and 12 month bills in and get £105 back each time) that this plus the £200 would work out the same as buying myself out of the contract outright.

I am now tied into an O2 contract at £35 per month until next June and an Orange contract for 18 months at £40 per month and I cannot seem to get out of either contract. Both companies have said they cannot do anything as I am tied into the contract.

Where do I stand with this as I cannot afford £85 per month for 2 contracts?