Save money: must-follow steps to switching TV providers

With enticing "new customer" discounts available, it's no surprise if you want to jump ship with your cable or satellite provider to take advantage of lower rates with another company.

However, when it comes to switching cable companies, it's important to always shop around and read the fine print before you make any definitive changes. If you don't, it could make a huge dent in your wallet.

To help you avoid losing money, keep reading to learn about important steps you need to follow to ensure an easy cable or satellite installation and switch..

Step #1 - Exhaust all Options When Comparing Rates

Cable and satellite offers vary by location, so you'll have to do some thorough research to make sure you're getting the best possible deal.

So, where should you start?

The Internet: Check the websites of the companies that operate in your area and compare the current rates for each one, says Jeff Haynes, editor of TechBargains.com, a site that recommends what tech products to buy and where. You might find special online-only discounts you wouldn't know about otherwise.

Local Friends and Neighbors: Ask people who live in your area about which provider they use and whether or not they're satisfied with the cost and service, suggests Teri Gault, founder and CEO of The Grocery Game, a money-saving website. Who better to give a review of a company's service and products than current customers?

School/Rental Associations: "It may be worth checking with places like student unions (if you're a student of a college or university) or checking out the new tenant mailer if you move to a new location in case discounts are available," Haynes adds.

[Are you ready to switch TV providers? Click to compare rates from providers in your area now.]

Step #2 - Know How Much Your Early Termination Fee Will Cost You

If you're currently with a provider, and you're looking to drop them, you should first find a copy of your contract and read the fine print, says Gault. If you don't have a copy of your contract handy, ask your cable or satellite company to send you a copy.

It's important to do so as many companies charge an early termination fee (ETF), which is often built into the contract, Gault says. And those fees could be very steep.

For example, Gault says that if you decide to cancel a 24-month contract with Cox Cable, the ETF is $240. And whether that's worth paying for or not depends on many factors, such as how much you'll save by switching to another company, according to Gault.

To help you determine whether or not an ETF is worth paying, Gault offers this advice:

"It would not be a good idea to switch to a different provider if the promotional bundle price may be lower for 6 months, but after that jumps above the prior cable company price," Gault explains. If that's the case, you might not be able to recoup the EFT you paid to the previous company.

Step #3 - Finalize Your New Contract before Cancelling with Your Old Provider

Before you pick up the phone to cancel service with your current provider, you should first ensure that your new contract is finalized.

You'll want to do this for a couple of reasons.

First, you'll want to lock down whatever low rate you're being offered by the new provider. If you don't have the rate laid out in a contract, you run the risk of the rate going up - possibly higher than the rate you currently have. And if that happened, switching would just be silly, wouldn't it?

The second reason is that you'll be able to eliminate the risk of going without TV and missing an important football game or episode of Dexter.

Plus, most TV companies will let you set up installation appointments at your convenience, ensuring that you can overlap the elimination of your old service with the beginning of your new service.

[Do you want to save on your TV bill? Click to compare rates from providers in your area now.]

Step #4 - Pay Any Outstanding Fees and Request Cancellation Confirmation

If you choose to cancel your current cable service so you can switch to a new company, the best way to handle it really depends on what is most comfortable to you, says Haynes.

"If you feel better about calling and expressing your lack of satisfaction with your service, then placing a call makes sense," Haynes says. Or if you prefer to do things in person, heading into a local office and closing out your account is just as good (although you may have to wait in a line if it's busy). You can even handle the cancellation via online chat if you'd prefer to have minimal contact, Haynes adds.

No matter which option you choose, Lal says you shouldn't rush through the cancellation.

Instead, you should ask all the necessary questions, like whether there are any outstanding fees and when your service will shut down.

Most importantly, Lal says you should "request written confirmation of the service cancellation."

Step #5 - Return Equipment Promptly after Cancellation

Once you've cancelled service, you are contractually obligated to return any and all equipment that you have received from the cable company, according to Haynes.

"Regardless of what some people think, you don't own the cable box, remotes, or cards that are part of your service; that is essentially rented from the company and you pay a monthly fee to have the devices in your home," Haynes explains.

You'll also want to return the equipment in a timely manner.

In fact, you are often provided with a grace period (which is usually around a week) to return all devices, Haynes says. And you really don't want to miss that deadline, as "some companies might start applying monthly charges until all equipment is returned," Gault says.

Also keep in mind that even if you return the equipment on time, you'll still have to pay a final service charge, which is based on the condition of the equipment (if it works, has any cosmetic damage, etc.) and includes a charge for use of the device during that last month, says Haynes.