iphone 5 wifi hotspot without paying?

Jailbreak it. Other than that, I don’t follow the Apple scene enough to know what apps are out there. From time to time, someone will release an app that is able to tether without jailbreaking – but it gets taken off the app market very quickly.

Exactly. Regardless of whether you jailbreak, use an app, or use the built in functionality – it’s going to use your data.