Managing your subscriptions efficiently is crucial for maintaining financial control and preventing unnecessary expenses. Many people unknowingly pay for services they no longer use, leading to wasted money.
According to a recent survey by CNET, the average American adult spends $91 on subscriptions per month. From the survey, 48% of respondents said they signed up for a free trial of a paid subscription and forgot to cancel it down the line, throwing away more money.
Follow these steps to track and cancel unwanted subscriptions and ensure you’re only paying for what you need.
1. Identify Your Active Subscriptions
The first step to managing subscriptions is understanding which services you’re currently subscribed to:
- Check Your Financial Statements: Review your credit card and bank statements from the past year to locate recurring charges. This manual review can help uncover forgotten subscriptions.
- Use Subscription Tracking Tools: Services like Rocket Money (formerly Truebill) and Trim by OneMain can analyze your transactions to identify recurring payments.
2. Manage App Store Subscriptions
Many apps enroll users in recurring charges, often on a monthly or annual basis. These charges may go unnoticed until they appear on your bank statement. You can manage and cancel these subscriptions directly from your phone:
- For iPhones:
- Open Settings.
- Tap Your Name, then Subscriptions.
- A list of active and inactive subscriptions, along with their costs, will appear. Select a subscription to cancel if necessary.
- For Android Phones:
- Open the Google Play Store.
- Go to Subscriptions.
- Select the subscription you want to cancel and tap the Cancel button, following any further instructions.
3. Set Reminders for Free Trials and Promotions
Many services offer free trials or promotional pricing that automatically renews at full price. To avoid unwanted charges:
- Use Calendar Alerts: When signing up for a free trial, set a reminder a few days before it expires. This gives you time to evaluate whether you want to continue or cancel the service.
4. Utilize Financial Management Apps
In addition to subscription tracking tools, other financial management apps can help monitor your spending habits:
- ScribeUp: This tool identifies and cancels unwanted subscriptions while offering a centralized platform to track recurring charges.
- Other Budgeting Apps: Services like Snoop, Money Dashboard, and Emma provide insights into your spending patterns, making it easier to spot and manage subscriptions.
5. Stay Updated on Consumer Protection Rules
Regulations are evolving to protect consumers from tricky subscription models:
- FTC’s “Click-to-Cancel” Rule: The Federal Trade Commission has introduced a regulation requiring businesses to simplify the cancellation process, making it as easy as signing up.
By following these steps and leveraging available tools, you can take control of your subscriptions, eliminate unnecessary charges, and ensure that your money is spent on services that truly benefit you.