Not only would I like to backup my contacts to an external storage drive so I can use it for a mail merge.
How can I export iOS contacts to a spreadsheet?
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There is a solution if you have the Numbers app:
Here is the way to get your CSV file. https://itunes.apple.com/us/app/my-contacts-backup/id446784593?mt=8
You can backup 500 before you have to spend a few bucks.