5 Ways to Avoid Unnecessary Fees

April 11, 2010

Are you wasting money by being a no-show? The folks over at BillShrink, the independent and free money-saving site that saves families money on every day bills (think of them as personal finance matchmakers), have been nice enough to collect a list of the most expensive things that you want to carefully cancel – to save you and your family big bucks in the process! Here are 5 early termination fees that you can avoid paying.

1. Is Air Travel a Rip-off? We know that as a parent, things often “just come-up,” so most of us end of paying hefty fees to move a flight a day or two. Those cancellation fees really add up!

The Fix: Some travel agencies and third-party airline booking agents will ACTUALLY absorb the cost of change-of-flight or cancellation fees, that could be one perk of having someone plan your vacation. Also, keep a look out for programs like Priceline.com’s Priceline Negotiator policy that claims to eliminate change or cancel fees on the published price of purchases. Also, factor any change-of-flight or cancellation fees into the estimated cost of your travel, to prepare for the worst case scenario (in which you are forced to charge an exorbitant amount on your credit card for a flight you never boarded).

2. Watch Out For Cell Phone Early Termination Fees. Beware the terms of “authorized dealers.” As three out of four of the major U.S.-based cell phone service providers state, authorized dealers may require additional fees.

The Fix: Read the fine print and know what your carrier’s ETFs are. Are you likely to keep the phone plan for the minimum term of service? Do you plan to remain in the location of service coverage for the minimum term? If the answer to either question is no, consider a month-to-month contract option or a pre-paid cell phone.

3. Read The Fine Print on Cable Companies’ Contracts. As various sports seasons starts, you may get talked into jumping ship from your long-time cable provider to go for the package that gets you the shows to keep the family happy. But be careful, canceling a TV service is not cheap!

The Fix: As always, read the fine print before you sign a service agreement. Make sure that if you are buying into a bundle package like the Comcast Cable “triple-play”, you can cancel any of the three services while keeping the others at no cost to you.

4. Make Doctor Appointments Carefully. We know family life is hectic, but making sure you can get to that doctor appointment can save you some serious cash. If you go to a private practice, you notice your doctor has started charging a no-show or cancellation fee because the overhead cost of operating a small office with few licensed practitioners can be costly. When patients cancel appointments at the last minute (typically less than 24 hours notice), practitioners lose treatment or prescription revenue, or the cost of the visit.

The Fix: To avoid fees, plan your visits far enough in advance so you can commit to the appointment or cancel ahead of 24 hours before the visit – otherwise, have your credit card ready.

5. Reserve Hotel Rooms With Care. Many, if not all, hotels have a cancellation policy that requires a fee to cancel a reservation. In some instances a traveler could end up paying for nights that they did not stay at the hotel.

The Fix: To avoid these cancellation fees, know the hotel’s policy before you make a reservation. Also, book only for nights you are sure you will need to stay in the hotel. If you book your trip through a third party like Hotels.com or Expedia.com, read up on their policies. You may want to call the hotel directly to find out what it will cost if you miss your stay.

These are some of the most common early termination or cancellation fees. Of course there are many more, like missing a salon appointment. Now you can even get penalized if you cancel too many restaurant reservations or don’t show up, especially if you book those reservations online. So make sure you plan ahead accordingly so you don’t have to pay extra or unnecessarily.