Important Tips for Managing Unused Subscription Services
It is estimated that British consumers could be spending as much as £1,200 annually on various subscription services. However, they stand to save around £400 by discontinuing subscriptions that they no longer use, which are often referred to as “zombie” subscriptions.
Many households find themselves paying for multiple subscriptions that go unused, ranging from fitness apps to streaming services like Netflix that barely get watched. These subscriptions can continually take money from bank accounts without being noticed.
According to a survey by Nationwide, about 19% of people subscribed to services do not use all the platforms they pay for. By cancelling or consolidating these services, they could save a substantial amount of money. Post-Christmas, when finances are usually tighter, 31% of consumers are considering reviewing and possibly cancelling these unused services.
Mark Nalder from Nationwide suggests that the beginning of the year is an ideal time to evaluate one’s financial commitments. He advises that consumers could look into combining accounts for more affordable family plans or cancelling any subscriptions that have been forgotten to manage spending better.
Experts in personal finance recommend starting this process with a thorough audit of all subscriptions. Reviewing bank statements to track payments made to various services and then documenting them in a spreadsheet can be very revealing. It helps to note the last usage date and the total expenses, which might uncover subscriptions that were previously overlooked.
Rebecca Bebbington from NetVoucherCodes advises creating a comprehensive list of all regular expenses, whether they are monthly, quarterly, or annual. She suggests actively noting the usage of these services and keeping track of their renewal dates.
Once armed with this organized information, it becomes easier to determine which services are valuable and which are not. For instance, if someone subscribed to Apple TV just to watch specific shows like “Severance” or “Ted Lasso,” it might not be worth continuing the subscription after the series ends, especially when the monthly cost is £9.99.
Fortunately, most streaming services offer the flexibility to cancel monthly subscriptions anytime. It’s also worth noting that certain shows or films might be available across different streaming platforms, sometimes for lower costs or even included in other subscriptions.
Beccington also suggests a strategy she calls “leapfrogging,” where instead of maintaining multiple streaming subscriptions simultaneously, one could subscribe to one service at a time, enjoy the content, cancel, and then move on to another service.
There are also opportunities to access certain subscriptions for free as part of other services. For example, Club Lloyds account holders can choose a free “lifestyle benefit” like a 12-month Disney+ subscription. Similarly, Amazon Prime members automatically receive benefits like the Deliveroo Plus Silver package, which offers free delivery for orders over £15. Additionally, companies often offer free trials that can be utilized before starting to pay the regular subscription fee, though it’s crucial to remember to cancel before the trial ends if the service is no longer needed.
There may also be opportunities to negotiate lower prices for subscriptions by threatening to cancel, particularly towards the end of a discount period when companies are likely to offer extended trials or promotional codes.
For households with multiple users of the same service, opting for family or duo plans can offer significant savings. For example, Spotify’s Premium Family plan can cover up to six members for a much lower combined cost compared to individual subscriptions.
Soon, new consumer protection laws will require companies to proactively inform customers about their subscriptions and how they can be cancelled, as explained by Katrina Anderson, a lawyer from Mills & Reeve. This aims to help consumers be more aware of their subscriptions and make informed decisions about keeping or cancelling them.
For those looking to see how these savings could impact their financial goals, tools like savings calculators can illustrate how quickly money saved from cancelled subscriptions can accumulate into a substantial savings amount.
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