How much are you spending on unused subscriptions?

Have you ever stopped to think about how many subscriptions you have - and how much they all cost?

Many of us fork out for all sort of subscription services without thinking, from Netflix, Amazon Prime and Spotify Premium to HelloFresh, fitness apps and the gym.

But according to thimbl.com. the average person is spending around £61 a year on subscriptions they either forgot to cancel or no longer use.

Personal finance expert Joe Lytwyn believes this is partly because subscription spending has “crept into every corner of modern life”, so people aren’t thinking about the cost.

“Ten years ago, a subscription meant your phone contract and maybe Netflix,” he said.

“Now, we’ve normalised subscribing to everything.

“It feels easier to ‘set and forget’ than to shop around.

"But what starts as £7.99 here and £10.99 there soon adds up to hundreds of pounds a year.”

Streaming ‘is no longer the budget option’

At first, TV streaming services were a relatively cheap alternative to cable or satellite TV stations.

But thimbl.com believes that with many families paying for three or more streaming services, that’s not the case anymore.

“Streaming is no longer the budget option,” Mr Lytwyn commented.

“When you factor in multiple platforms, it’s no wonder many are shocked when they add up what they’re spending each year.

“It’s the cost of a holiday, a new boiler, or Christmas for the whole family.”

Companies ‘want people to forget to cancel’

Mr Lytwyn believes part of the problem is that the industry has “cleverly normalised” spending that would once have “seemed outrageous”.

“For many, it’s become the default to sign up and forget about it, without ever questioning whether it’s still good value,” he said.

However, he suggested it’s not just people’s forgetfulness that’s to blame.

Instead, he argued that some subscription services are designed this way.

“A free trial is rarely free,” Mr Lytwyn said.

“Companies rely on people forgetting to cancel, and they make the cancellation process deliberately fiddly. 

“This isn’t consumer choice, it’s a trap.”

Review or cancel services you don’t use

This comes after research by TSB found that nearly one in five (17%) people have never reviewed or cancelled a subscription.

That’s despite many people also saying they’re concerned about their wider financial situation, with almost a quarter describing their finances as “uncomfortable”.

As a result, TSB has urged people to look at their subscriptions and cancel any services that they’re not using.

“They may seem small amounts, but if you aren’t getting value for money, they soon add up and could save hundreds of pounds over the year,” the bank said.

If you want to prioritise your spending, so you can keep up with essential costs and stop wasting money on services you don’t use, try our budget planner.

Also, read our guide on how to create a budget to help you get started on working out where savings can be made.