Why You Should Consider Paying Your Early Termination Fee

Consumer Action points out that ultra-competitive prepaid market is producing some astoundingly inexpensive all-you-can eat rate plans. And breaking your cell phone contract to take advantage of them may be cheaper than you think.

• Determine whether you are in the ETF "penalty box." Users who've had the same phone and price plan for more than two years are probably unaffected by ETFs. Those who are subject to the penalties may have to pay only a prorated amount.
• Do the math. A $150 penalty may seem steep, but it's quickly offset if you can cut your $90 monthly phone bill in half.
• Avoid re-upping with your carrier. Operators typically offer new phones or more attractive price plans to users nearing the end of their contracts in an effort to lock customers in for another two years.
• Watch for carriers looking to change the terms of the contract. Major changes in terms can allow consumers to kill service without paying an ETF — which is an option Kevin over at jkOnTheRun began considering with his Palm Pre last week.