Fight Hidden Fees and Uncover Savings

By Katelyn Hayes   

Keeping a close eye on the fine print is the best way to stay ahead of your finances. Hidden fees springing up can blow even the best-guarded budgets. Many consumers are mindful of hidden credit card fees but can be blindsided by unexpected costs elsewhere.

From monthly wireless statements to cable and Internet bills and even hotel stays, unforeseen expenses can pop up anywhere. These added fees wind up costing the average American $946 a year.¹ But vigilance can prepare you for the added expenses and, in some cases, even help you avoid them.

Where do hidden fees lurk?

• Extra costs can appear on wireless bills as federally-mandated programs, like ones that allow phone number transfers from carrier to carrier, and emergency 911-locator services. Charges like these have amounted to almost $1 billion since January 2002.²

• Low introductory Internet and cable offers can lull consumers into a false sense of security. Later, bills can more than double when the "welcome" grace period ends. And be mindful of tacked-on equipment fees for your cable box or DVR.

• Travelers often encounter automatic bellman, housekeeping, groundskeeping, resort or even towel fees tacked on their bills regardless of services used. These add-ons resulted in $2 billion collected in hidden hotel fees and surcharges in 2007, up from $550 million just four years ago.³

Avoid unnecessary fees

• While some extra fees are inescapable, others can be skirted with careful attention. Make sure your wireless plan is broad enough to cover your average usage and avoid getting hit with high-priced extra minutes and texting fees. Also, instead of punching in "411," dial out to a free directory assistance number and save up to $2.

• Bundle Internet, telephone and cable services to lower costs, and ask about extra fees upfront so you'll get a truer picture of what to expect down the line.

• Don't be afraid to argue over hotel fees. Most hotels want to keep customers happy and returning, so they may be willing to waive certain fees. And ask in advance what fees are included to avoid double-tipping.

Footnotes

¹ "Avoid Sneaky Fees and Demand Fair Treatment," MSNBC.com. Jan. 14, 2008

² "How to Fight Those Hidden Charges," MSNMoney.com. Dec. 2, 2008

³ "Top 10 Most Annoying Hidden Hotel Fees," ForbesTraveler.com. Nov. 27, 2007