We’ve all got a basket of subscriptions that come out of our bank account each month. There’s the good type of subscriptions (you know, the ones you actually use like Netflix or Amazon).

And then there’s the bad type of subscriptions (the ones you signed up to once and forgot to cancel - helloooooo Audible and that dog-training app you’ve used once).

And while this may feel like a small amount of money here and there, have you ever wondered how much they add up to be?

Turns out the average Australian is spending $57 per month on subscriptions, which is almost $700 a year!

Yep, these innocent looking automatic payments can stack up fast!

Welcome to the Subscription trap

The subscription trap is when you’ve got tonnes of automatic payments coming out of your bank account, and it’s become too hard to track how many subscriptions you’re paying for, and whether you’re still using them.

And the worst part? When the cost of an app you never use (but still pay for) sneakily goes up for $2 a month and you didn’t even know about it?

You’re not the only one!

Around 39% of Australians have scheduled payments for services they don’t use anymore.

But, the story gets worse, because in the last year, subscription platforms have been dropping sneaky price increases our way.

Watch out for those sneaky price jumps

Forgetting to cancel subscriptions you’re no longer using is one thing, and paying more for them than you originally signed up for is another.

Earlier this year, Netflix jacked up its prices. Ad-free plans jumped 11% in price and Netflix’s standard plan with ads jumped 14% in price.

This might only be a couple of dollars, but when Amazon Prime, Binge, Stan, Kayo, Spotify, Disney+, and more have all increased their prices since May 2023 - the pressure on the wallet heats up.

Here’s what those price increases actually look like:

And that’s just video streaming platforms. Don’t forget there’s also gym memberships, fitness apps, education, and food delivery subscriptions, 

Today, more and more industries are adopting the subscription payment model - they’re everywhere. In fact, the “subscription economy” now has a global value of $410 billion.

Tackle unwanted subscriptions with a ‘subscription spring clean’

According to NAB, ditching old and unused subscriptions could save Aussies over $600 a year!

With that much up for grabs in savings, cleaning out unwanted subscriptions is a no-brainer.

Yep, it’s time to go Marie Kondo on your subscriptions.

Grab a copy of your bank statements and credit cards and investigate them for any payments that you don’t remember paying for or you know you haven’t used.

Get onto the websites of these services and cancel the unused payments. 

This can be a bit of a maze - some businesses can be sneaky in making cancelling a subscription a tougher than a cryptic crossword, but the savings are worth it.

Your extra savings can then go towards hitting your financial goals - win win!