"Buyer beware: The top tech traps to avoid"

Upgrade mania can be bad for your wealth. Waiting a while can pay off. 

TECHNOLOGY is transforming our lives faster than ever, but those who aren't careful about their spending on new gadgets can see their bank balances transform too.

Consumers should balance their purchases with research and an understanding of the costs involved to make sure they don't join the rising number of people filing complaints.

The Telecommunications Industry Ombudsman says new complaints rose 17.8 per cent last financial year, but we're continuing to buy up big.

The latest Canon Digital Lifestyle index found Australians bought 6.6 million digital devices

worth $2.8 billion in the first half of 2011.

It pays to be aware of the potential financial traps. Here are some.

UPGRADE MANIA

Chasing the latest smartphone or tablet computer can be bad for your wealth. Do you really need the latest i-thing just because it's got a few more bells and whistles you're unlikely to use anyway?

"What we have seen, with tablets in particular, is price drops a few months after the products are released," says Telsyte research director Foad Fadaghi. "That's caught people out who have gone into financing arrangements and longer-term contracts."

Canon's research found a 14 per cent drop in selling prices in just six months.

"If you are using a product, get a sense of how often you're going to upgrade it, then assume you might upgrade it sooner," Fadaghi says.

He says people should look at how often companies upgrade their products.

For example, iPads are being upgraded by Apple once a year, so you can generally plan your finance around that.

SOFTWARE STRIFE

Just like devices, upgraded software can lead to a price drop a few months after launch.

"For example, video editing and sound editing software prices are coming way down," Fadaghi says.

"Get a sense for when the next version is due. Talk to the retailers, but sometimes it's difficult because they may not know themselves."

IN-APP PURCHASES

There have been stories of children ringing up big bills on mum and dad's digital devices because they bought items within games, often not realising it was using real money.

Michelle Starr, an associate editor at product review website CNET, says the best way to beat this is to have your device password-protected or by disabling in-app purchases.

"Check the ratings and reviews but people can fake reviews so be wary if all seem too positive and there are only a few of them," Starr says.

BILL SHOCK

"Some of the data plans carriers have on tablets and smartphones are quite modest," Fadaghi says.

"If you breach that, some of them will start charging per megabyte and that can blow out." Streaming audio and video use the most data.

The latest Telecommunications Industry Ombudsman annual report says 2010-11 was its busiest year yet, with 197,682 new complaints - primarily about mobile phone services.

"We identified key issues related to smartphones, such as a 26 per cent increase in disputes about internet charges on a mobile service," it says.

Starr suggests going into your app marketplace and searching for a good data monitor. "That can help you check what your phone is using," she says.

GLOBAL ROAMING

Big shocks can hit people who travel overseas without realising most plans don't include offshore calls and data, and charge heavily for any activity.

Consumer group Choice says it's a major problem.

"We've heard far too many stories from people who have been on holiday and come back with bills in the thousands of dollars because they didn't know what the data roaming costs were," Choice spokesman Christopher Zinn says.

Starr says travellers can avoid data roaming costs by using hotels with wi-fi access. "You can download VoIP apps which bypass your phone provider, but they can charge money for calls,"