[robocat]

Even if the phone were destroyed, you would still have to pay the debt.

When purchasing a phone on credit, you sign a contract which gives the lender certain rights they wouldn’t otherwise have. No “rights” are broken.

[gostsamo]

Yes, I must pay the sum because I've borrowed the money and what happens to the phone is my responsibility. It has nothing to do with the rights of the lender. Their rights are to repossess the phone if it is not paid because the phone is collateral, not because they own it.