Americans are racking up digital subscription bills at a frenetic pace.
They also become concerned about the cost confusion that comes with jumping into the deep end of the monthly subscription pool.
Recent data from Bango, a mobile payment service provider, shows that 72% of American adults believe there are too many subscription services. In addition, the average digital subscriber pays for at least five subscription services per month, and 19% pay for eight or more services.
That’s not all.
45% of subscribers say they have a hard time keeping track of where and how they signed up for these subscriptions. Another 35% “have no idea” how much they spend on subscriptions each month, while 34% say they currently pay for a subscription service that “never use”.
“This isn’t just costing Americans money,” the report said. “It also affects their experiences and attitudes towards the subscription economy.”
Experts say managing subscriptions is difficult
A big part of the problem is that juggling multiple subscriptions – and multiple payments – is a hassle for online consumers.
“Online subscriptions are difficult to cancel and there is no easy way to manage multiple subscriptions,” said Top Mobile Banks founder Tommy Gallagher.
The headaches come from the often complex unsubscribe policies. “That process is often difficult because online subscriptions can be expensive and consumers may not be able to afford multiple subscriptions,” Gallagher said.
Since most subscription services only cost $5 or $10 a month, there is some financial subtlety involved.
“Online subscriptions are difficult to manage because subconsciously each subscription is not a lot of money and so it triggers this part of our brain to not pay attention to the price,” said Imagine Wealth Group President Jeff Cronenberg. “The advertising is so good for these monthly subscriptions, it’s hard to say no.” And the structure is so good that it’s very confusing to log out.”
Pressing the “Cancel” button.
How can you cut through the clutter and start canceling subscription services you don’t use or love? Here is a short list.
Know your limits. Make sure you understand what you’re signing up for and what you’re allowed to access.
“Be sure to set limits on how much content you can access at once and be careful not to let your subscription get out of hand,” Gallagher said.
It’s also a good idea to keep track of how much content you’re consuming and make sure you’re using the content you’ve paid for. “If you’re not using the content you’ve subscribed to, consider canceling your subscription,” Gallagher added.
Record the application. Get out the easy way using mobile subscription management apps like Rocket Money, AskTrim, or Pocket Guard.
Each app can automatically cancel unwanted subscriptions, and each can help organize and manage multiple subscription apps. Be prepared to pay a monthly or annual fee to use the best (i.e. premium) services that each of the apps has to offer.
Go online and review the subscription service in question, especially the cancellation instructions. If that doesn’t pay off, go straight to the source and call the company. While waiting for a customer support representative is a joyless experience, you’ll get the job done that way.
“Cancelling your monthly subscription can be a bit tricky, depending on the service,” said The Calculator founder Alastair Hazell. “For example, with Netflix, you can go to their website and click the ‘Cancel Subscription’ link at the bottom of the page.”
If trying to cancel service online is a dead end, contact the company’s customer service team, Hazel said.
Block payment. If all else fails, there are ways around subscription brick walls.
“One safe way is to contact your bank and ask them to block your credit card so the subscription service can’t charge you again after you cancel,” said Made in CA Associate Editor Annie Morris.
Or, as a last resort, have your credit card company get involved in the dispute.
“If it gets to this point, the subscription company will cancel your subscription because they don’t want to deal with the headache of a credit card dispute, especially if you have proof that you asked them to cancel,” Kronenberg said.
