How To Reduce Spending On Your Subscriptions

April 20, 2022

By mid 2021, the average US household was spending $55 on subscriptions per month, which represented a 17% rise in spending. Subscription services offer customers paid online news and columns to streaming services, and everything in between. There is no doubt that these platforms have revolutionized online consumption, but this has come at a cost for the average US citizen. 48% of respondents to a CTV recent survey on subscriptions raised concerns about how much they were spending in this area. 

Many streaming services, including Netflix, have fostered higher prices. With the market becoming more saturated with established brands, with CNN and NBC launching their own streaming platforms, it’s hard to track down a good deal. 

So, how can you reduce your subscription costs?

Make Sure You Don’t Pay For The Same Service Twice 

Many media platforms offer plans that incorporate other subscriptions within them. For instance, if you have an Amazon Prime Subscription, and you live in the UK, you could be entitled to a free Deliveroo Plus subscription. If you have Amazon Prime and you live in the US or the UK, you can access Amazon Music. If you are paying for a Prime membership and a Spotify account, you are essentially paying double for your music access. 

Pay Annually, Not Monthly 

 

We’re psychologically drawn to the less-committal option of paying a monthly subscription over a yearly one. However, through paying annually, you could be making significant savings. Of course, this should only be done if you intend to use the platform for a year. 

If this is the case, you will thank yourself 12 months down the line. For instance, with Spotify, you would be paying $9.99 per month for a Premium subscription. Alternatively, you could opt for the annual plan, which is priced at $99 for the year. This, in effect, means your monthly cost is $8.25. 

 

Yes, this is a marginal cost. Yet, if this approach is taken towards all subscriptions, you could accumulate sizable savings. 

Use Interest Free Credit If You’re Paying With A Credit Card 

Around 200 million Americans have credit cards, and a popular use for them is to charge subscription services to them. While this is convenient, given the easy access to funds, it can add to the bill if your credit is accompanied by high interest. 

To reduce the cost of this, you should elect to have a no-to-low APR credit card. With firms like CitiBank and American Express offering 0% APR introductory periods on some of their credit cards, this could save significant money. If you are paying $100 on a subscription, and using a card with 16.17% APR (average US credit card interest rate), overall, your subscription will actually cost you $116.17. Meanwhile, with interest-free credit, it would cost $100. 

If you are borrowing money from sources other than credit cards, such as a payday loan or credit union loan, make sure that you have acquired the best rates available to you. 

Set Reminders To Cancel Free Trials 

When deciding which streaming service to use, potential consumers are often offered a free trial. Many, while shopping around, will sign up for multiple free trials to whittle down to their favorite. A problem arises when those who have signed up forget to cancel their free subscription. While the trial period may have been free, failing to cancel it will lead to your card being debited for one month’s fee. You could, therefore, end up paying multiple subscription fees simply because you forget to remind yourself that your trial was over. So, set your reminders now! 

 

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