Cutting Back on Online Subscriptions

In recent years, the rise of online subscriptions has been exponential. With the convenience and affordability of these services, it’s no surprise that many of us have multiple subscriptions.

However, there’s a greater tendency to end up paying for subscriptions that we no longer use or forget about. This can lead to overspending and financial strain. Here are some reasons why many people are deluged with subscriptions and ways to cut them back.

Why do people have too many subscriptions?

Free trials

One of the reasons why people have too many subscriptions is due to free trials. Companies often offer free trials to encourage people to try their services.

Although, when the trial period is over, many people forget to cancel the subscription. This is especially true for subscriptions that require payment information to sign up. Once the free trial ends, the company automatically charges the customer’s credit card, and the subscription continues until canceled.

Choice AU consumer data advocate Kate Bower said the traps laid down for a subscription include trick questions and subscription traps per se are among dark patterns prevalent amongst Aussie consumers. Free trial offers can be “subscription traps” that should be avoided. She also stressed that the traps, along with false consumer reviews, put Australian Consumer Law behind other countries in terms of stopping unfair trade practices.

Convenience

Another reason why people have too many subscriptions is due to the convenience of these services. With just a few clicks, people can sign up and start using the service. Many subscriptions also offer automatic renewals, which means that customers do not need to remember to renew their subs manually.

FOMO (Fear of Missing Out)

Many people also subscribe to services due to FOMO (Fear of Missing Out). They do not want to miss out on the latest and greatest services, so they sign up for multiple subscriptions. This can lead to overspending and financial strain.

Lack of awareness

Some people may have too many subscriptions simply because they are not aware of how many they have. With so many active accounts, it’s easy to lose track of what you are paying for each month. This lack of awareness can lead to overspending and financial strain.

How to cut back on online subscriptions

Evaluate

The first step in cutting online subscriptions is to evaluate what you are currently paying for. Take a look at your bank statements or credit card bills and make a list of all your subscriptions. This will give you an idea of how much you are spending each month.

Once you have a list, evaluate each subscription and ask yourself if you really need it. If you haven’t used a subscription in the past month or two, consider cancelling it.

In some cases, issues with your service provider may force you to reconsider your relationship with them. In October 2022, international payment service PayPal lost roughly 100,000 users over the course of two days because of outrage over a “misinformation penalty” policy labelled to be something out of George Orwell. The Fin’s Sam Buckingham-Jones even took note of how 1.3m streaming accounts in Australia were cancelled in Q4 2022 due to financial issues.

Cancel unused subscriptions

Once you have evaluated your subscriptions, it’s time to cancel any unused subscriptions. Most subscriptions can be cancelled online or through a mobile app. If you are having trouble with cancellation, you may have to contact the company’s customer service department for assistance. But, be aware of hold times trying to get a customer agent on the line. We’ve all been there lamenting to the agent how long you’ve been made to wait.

The cancellation process seems to be tedious. Data from a 2022 Consumer Policy Research Centre study of 2,000 Australians revealed that 76 percent of respondents were having difficulty trying to cancel a subscription just before the trial period was over.  

Set reminders

To avoid forgetting about subscription renewals, set reminders for yourself. You can use a calendar app or a subscription management app to set reminders for when you are due for renewal. This will help you avoid automatic renewals and give you time to evaluate whether you still need to continue availing the service.

Share online subscriptions

If you have subscriptions that allow multiple users, consider sharing them with family members or friends. This can help you save money, however, check with your subscription content provider if they allow for account-sharing. Noted providers like Netflix are already setting up extra fees for account holders who want to network up to two people outside the household.

Having too many online subscriptions can lead to overspending and financial strain. By using a subscription management app, you can take that weight off your chest in due course.

UBOMI is the right partner to help you with making sense of your subscriptions. Through the app’s UMONEY feature, you can have an overall picture of all your subscriptions and cancel which of them at will. The app will automatically reprogram your budgeting if you have a special slider for allotting part of your income to paying subs.

If you liked our “Cutting Back on Online Subscriptions” and find it useful, check our blogs regularly for more information to get updates on UBOMI’s budget app and expense tracker.

DISCLAIMER: The above article is for informational purposes only. UBOMI has no relationships with any company or organisation mentioned in the article.