I want to cancel my iPhone contract with Verizon, how do I do it and what happens?

I have an iPhone 4S and I bought it on a contract with Verizon. Unfortunately, I can't afford the payment every month -- I was on my sister's family plan and it said I would only have to pay $45 a month but I decided to put on Applecare+ and because of hidden costs, I'm paying nearly $100 every month.

How do I cancel my iPhone contract? P. S. I don't care if I have to give the iPhone back or anything, I just want to get out of the contract. If I keep the iPhone, will it work at all or will it basically be an iPod after the contract is cancelled?

You need to pay $349 contract cancellation fee and price of iphone.
it will work as an expensive ipod touch after.