A quick tap and a password can be all it takes to lock in another subscription renewal, and while the charges may feel small at the time, they can add up fast.
That’s what Kern County mother Janel Burton discovered after taking a close look at three months of her bank statements. Burton said she thought she had a good handle on her finances, but the review revealed recurring charges she didn’t realize were still hitting her account.
“What is this?” Burton said as she went through the statements.
“I’m finding what I signed up for, forgot to cancel, you know, the trial periods — and then you forget,” she said.
The total cost of Burton’s various subscription charges over three months surprised her. A breakdown of the statements showed $424.36 spent on Nuuly during that period, along with $176 for Peloton plus an additional $5 charge. Altogether, that came to $605.36 in recurring charges over three months.
“No way,” Burton said.
According to subscription tracking service ReSubs, the average person has between five and eight active subscriptions and spends around $219 a month, with at least one subscription they’ve forgotten about entirely. In Burton’s case, there were two.
“I think I was maybe overspending, but I don’t pay attention to my bank statements, which I should,” Burton said. “That could be a trip or a plane ticket or car payments.”
Economics professor Aaron Hegde said recurring charges can be easy for consumers to overlook, especially when they’re spread across different platforms and payment methods.
“So in some cases, it is truly not something that’s noticeable, because you have to kind of dig around to see how much you’re paying,” Hegde said. “There are services where, if you use Apple payments, you can go under subscriptions on your device and see what you’re paying for. But if you subscribed directly through a website or service, you may not notice it until you see it on your credit card statement.”
With monthly costs from streaming and lifestyle services such as Netflix and Spotify, Hegde said it can be easy for consumers to lose track of spending. He recommends checking bank accounts at least once a month.
“It’s easier to opt into something than to opt out,” Hegde said.
Hegde also pointed to budgeting apps as another tool to help users track spending and identify recurring charges. Some features are free, while others require a paid membership.
Burton said she plans to make changes going forward.
“Pay attention. But I need to set myself reminders,” she said.
Before signing up for a seven-day free trial, consumers can avoid unwanted renewals by setting a reminder to cancel days before the charge date.