Hidden Subscription Fees: Stop Paying for What You Forgot

Hidden Subscription Fees: Stop Paying for Services You Forgot

Subscriptions are designed to be forgotten. Companies that offer subscription services count on a certain percentage of customers continuing to pay month after month for services they no longer use or even remember signing up for. Auto-renewal clauses are the primary mechanism that makes this possible. Most subscription agreements include terms that automatically renew your subscription at the end of each billing period unless you take specific action to cancel before the renewal date. Some companies make cancellation intentionally difficult by requiring phone calls during limited business hours, not providing confirmation of cancellation, or requiring multiple steps to complete the process. Free trial conversions are one of the most common subscription traps. You sign up for a free trial of a service, intending to cancel before the trial period ends, but you forget to cancel and your credit card is charged the full subscription price. Some companies make it particularly difficult to cancel during the trial period, requiring you to call and speak with a retention specialist who will try to convince you to stay. Price increases on existing subscriptions are another hidden cost. Many subscription services reserve the right to increase prices at any time with minimal notice to existing customers. You may be paying a higher price for months or years without realizing the rate has increased because the charge is automatically deducted from your account each month. Add-on subscriptions that are bundled with main services, forgotten subscriptions from years ago that continue charging your credit card, and subscriptions that continue after you have stopped using the service all contribute to the growing problem of subscription creep. Review your bank and credit card statements every month specifically looking for recurring charges you no longer need or want. Cancel any subscriptions you are not actively using and consider using a subscription management service to track all of your recurring expenses in one place.