Subscription-based products have become more and more common in recent years. This is by and large due to the shifts that have taken place in media and streaming, but has also extended into a wide range of services from groceries and health products to leisure items and memberships.

While there have historically been certain services and products that usually require subscriptions, the way many businesses have now pivoted toward subscription-based products has meant that many of us find ourselves unaware of how many subscriptions we actually pay for.

We’ve started to see sleight of hand tricks that make consumers feel like they are paying less for a product or service, but in reality, they are unknowingly paying up over the long run.

Although not all subscription services are inherently dishonest or using these tactics, it is important to understand how they keep us as consumers subscribed to their plans, and what we can do to manage our subscriptions, and make sure that we aren’t being repeatedly charged for products and service we either don’t use or don’t need.

Beware subscription traps

First, we need to make sure we aren’t falling into subscriptions traps. These so-called “traps” have been identified as a massive economic drain on people in Australia and involve services that use an incentive to get people to sign up, but then are designed to keep people locked in with a degree of difficulty in getting out once you no longer wish to pay. These could be simple deals like free or cheaper first month access or a few day trial period that discreetly bills you afterwards and then on an ongoing basis.

Companies who employ these tactics will often have ambiguous wording around payment and will make it difficult for you to cancel your subscription.

An example of this can be that perhaps you subscribed in a few clicks, but then need to call a number directly within their trading hours and speak to someone about the termination of a payment.

Self-auditing

The second aspect of managing subscriptions, and in turn managing your financial position, is to consolidate and cull. This involves doing a bit of an audit on yourself and figuring out where your money is really going on subscriptions. There are a number of cheap and easy consolidation sites online (but make sure you’re not just subscribing to something new) and then you will have a clear view of exactly how much you’re spending. Alternatively, much like when you’re planning a budget, you can look back at your bank statements carefully, and notice your charges – make sure to look back over 12 months or more as some subscriptions may be annual – then begin to decide what you really need. Perhaps there are a few services that are similar, maybe you can figure which one you actually use.

I know when I did this for myself, I found things that I either hadn’t used in months or that I knew I didn’t need any longer. I really weighed up the value each product or service had to me and determined if it was worth it. I now make sure to do this every few months just to make sure I’m not wasting any money on useless services. The whole experience has given me more financial freedom and overall less financial stress and I’d encourage Mob to try it out and see if it does the same.