From shopping and entertainment to meal delivery and health and fitness apps, there's a subscription for just about everything. But do you know how many you’re signed up for and how much you’re spending on them every month?
This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.
According to recent data, the average Brit pays out nearly £500 every year on subscription services.1 A survey of 2,000 adults by Vision Express revealed that the average subscriber is signed up to four separate monthly services, but here’s the catch: 45% admitted they signed up to a plan using an introductory offer and 65% ended up having to pay more because they forgot to cancel in time.2
So how can you manage subscriptions? This article explores what subscription services are, how they work, and offers some tips for managing and auditing subscriptions.
A subscription is a business model where a company charges a recurring fee to access its products or services, which could be monthly, quarterly, or annually.
Here are some common examples of subscription services:
After a customer signs up for a subscription online or through a mobile app, they are typically charged automatically on a regular basis. Many subscription services also offer free trials, promotional periods, or tiered pricing options to attract new customers and retain existing ones.
Check out an overview of common subscription types and how they work:
Wondering how to keep track of your spending, bills, and subscriptions? Consider these best practices:
With so many options for subscription plans, it’s easy to forget which ones you’re paying for — and even easier to forget the ones you’re no longer using. Auditing your subscriptions can be a great way to make sure you’re not paying for the things you don’t use.
To audit your subscriptions, you could start by:
Learn how PayPal can help you track your spending here.
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