*** 5 ways to eliminate being overcharged...

*** Tired of overpriced water bills, here's how to make sure you never pay a cent more than you owe...

*** Don’t take swindling lying down… and more...

From the pen of Karin Iten,

Dear Investment Academy reader,

Last week, I shared my top tips for paying those nasty bills on time with you – I hope they’ve helped. But, once I'd finished writing and sent you your issue, I realised I’d left out some crucial bill paying information – what to check for to make sure incorrect invoice doesn’t eat into your cash.

There are few things worse than receiving a bill for the incorrect amount. It’s really frustrating and can be very time consuming to sort out. So, if you’re fed up with phantom charges and incorrect amounts, here are my top five ways to ensure you never get overcharged again.

Tip #1: To err is human… but not picking it up can be catastrophic!

Mistakes happen – that’s a fact of life. It often comes down to a simple slip of the fingers, the numbers being reversed or (as in the case of my 2007/08 income tax return) the decimal place shifting one too many spaces to the right. Normally these are quite easy to fix and even easier to forgive. The only way you’ll pick this error up is to actually check the statement.

But not all mistakes are as innocent as this. Many are downright corrupt and can set your temper (not to mention your pocket) on fire. Let me give you some examples…

* Hospitals are notorious for overcharging you for a hospital stay. Always check your invoice to make sure you haven’t been charged for the wrong type of room or for an extra day.

* Meter readers can be quite dodgy too. In many cases, meter readers NEVER actually shows up to read your utility consumption. Instead they simply “estimates” how much you used over the month. So how can you ensure you’re not over charged for water and lights?

An easy way is to take a photo of the correct reading on a set date every month. This way, should you suspect the amount you're being charged, you can check your reading against this. If this sounds like too much hard work, then arrange an appointment with your meter reader and have him/her take the reading while you’re at home. And remember, if you’re disconnected for a service and it’s the utility company’s fault, make sure you're not charge for the reconnection.

* Make sure you're not paying for a service/product you never received. I’ve heard many cases where hotels have added extra service charges to guests’ bills but they never actually received the service.

Tip #2: Get what you’re paying for

Don’t automatically assume that when something is delivered everything you’ve ordered is there. This is particularly relevant if you’ve ordered an item in large quantities, such as building material. If, for example, you’re under-delivered 100 bricks, each costing R2.50 this could amount to a loss R250.

Tip #3: Keep your slip

When you return something, verify that the amount you paid is credited back to your account – especially if it’s for a small amount. Many of us simply forget to check whether that R20 is back in our accounts and big companies know this – And they end up pocketing a small fortune.

Remember, it’s no use kicking up a fuss about being overcharged if you never check that you’ve been reimbursed.

Tip #4: Have you paid for this before?

Always check for duplicate billing. (This is just one of the reasons why it’s so important to know where your bills are if you need to dig them up in a hurry.)

One of the most common reasons for double billing occurs if you’ve changed the date on a debit order and the bank hasn’t processed the cancellation of your other debit order yet.

So, if you change the date your debits go off from your account, check that the other has been cancelled before the first of the month.

Tip #5: Check for VAT

Before accepting a quote, enquire whether VAT has been included into the price or not. That way, you’ll know exactly how much you’re in for.

Bonus tip: If you’ve been overcharged for a product or a service and have gotten no where by approaching the company concerned, you can always approach your nearest Small Claims Court as long as the amount is less than R7,000. Having your case resolved this way will require a fee of approximately R15 but, since there are no lawyers involved, you’ll save on costly lawyer fees.

Hope this helps. Aiden will join you on Wednesday for your next issue of Investment Academy.

Until next Monday…

Happy saving,

Karin Iten
For the Investment Academy