Waste not, want not...
WE NOW live in what some call the “subscription society”, where we increasingly pay for goods and services via monthly direct debit – notably music and film streaming – but a lot more besides.
People take out subscriptions for all kinds of things these days, including entertainment platforms such as Netflix, Amazon Prime, Disney+ and Spotify, video games, gyms and even computer software such as Microsoft Office.
It does not stop there; food boxes, baking ingredients, beauty products, books, plants, artisan coffee, wine, cocktails, craft beer and gin and even cheese and underwear are just some of the goods and services that are sold by monthly subscription.
Businesses encourage this because it brings them steady cash flows.
It is also easy and convenient for consumers. But there is a catch.
Too many end up throwing money away by continuing to run subscriptions for services they no longer use, month after month, year after year.
The more we spend on subscriptions, the more likely we are to be wasting money.
So now is the time to check whether you are getting value for money.
Britons spend almost £8billion more than we did before the pandemic, according to new research from
Topcashback.that may have kept us entertained during lockdown but also means we waste more than £100 a year on average by paying for something we no longer use.
Almost half admit that they have continued to pay for subscriptions or memberships despite not getting value for money, but it typically takes six months to get round to cancelling them.
Some of us forget but others are lazy, with one in four saying that cancelling an unused subscription was too much hassle.
We are showing our subscription services more loyalty than they show us, as eight in 10 people said their services had not offered to freeze memberships during the pandemic, while more than half hiked prices instead.
Topcashback UK director Adam
Bullock said that with lockdown now over, it is time to cull unwanted subscriptions and memberships.
“If you examine your bank account, you might be surprised to see what you are still paying for,” he said.
Once you have done that, make a pledge to ensure you are getting value for money. “Put a diary reminder in, if it helps,” Bullock added.
Next, keep a keen eye on when free trials come to an end and cancel unless you genuinely think you need the service.
This will remain a constant challenge as yet more products and services are sold by subscription.
On average, we now spend £620 a year each on sign-up services and Marc Pettican, president of Barclaycard Payments, said this will continue after lockdown as the range of subscription offers continues to expand.
Households should also be checking other regular financial commitments, such as home energy, broadband and mobile phone, to ensure they are delivering value.
Getting the best deal on your gas and electricity is particularly important, ahead of the energy cap hike on October 1. More than 11 million households who have sat on their standard variable tariff for years will see bills rise by £153 to £1,309 on average, unless they hunt around for a cheaper supplier.
Damien Fahy, founder of personal finance website Moneytothemasses.com, urges people to comb through their bank accounts for unwanted or expensive direct debits as outdoor life restarts.
“We are all likely to spend a lot more going out in future, so should try spending less on staying in,” he said.