It means you get to pay $199 + $250(early upgrade price) for the new iPhone. They will bill you for the $36 upgrade fee as well. Get that bill current because you won't be able to upgrade if it's not current.
no it doesn't.
I work at ATT.
On the screen to select upgrade/cross upgrade/add mobile, it won't let you continue b/c there's a past due balance.
There's workaroubds, but technically, you can't upgrade with a past due balance.
If you're due for an 2 year upgrade, pay your bill and see what it says.
If you're ready for an early upgrade, then DaR is right, bit you still have to pay your bill.