4 Steps for Spotting, Avoiding Costly Fines

1. Determine if you're in the ETF "penalty box". Many of us don't know if we'll be hit with an ETF if we switch. Call your carrier and ask. If you've had your plan for two years or more, though, you can safely assume that you're no longer in the ETF penalty box.

2. Do the math on your cell phone penalty. If you're paying $90 a month now and switch to a cheaper cell phone service (such as a prepaid wireless plan for $45), you can "pay off" a $150 penalty in just three months. Thereafter, you would be saving $45 a month as compared to your current plan.

3. If you're out of the ETF penalty phase and want to stay out, don't be lured back in. As your ETF penalty box draws to a close, don't be surprised if your cell phone carrier tries to get you back in through the allure of a new phone or more minutes.

4. If you want to switch, watch for your carrier changing the terms of your contract. Major changes by a carrier to your contract terms can sometimes be used as the basis for escaping an ETF. If you want to switch and avoid an ETF, be on high alert for bill inserts, emails and phone calls that change your terms and ask for your approval.