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?
According to recent data, the average consumer spends nearly $220 per month on subscriptions.1 But here’s the catch: Consumers underestimated their monthly subscription spend by more than $130, with 42% of respondents claiming they had forgotten about a recurring subscription they were still paying for and 20% feeling overwhelmed with the number of subscriptions they have.1
So how can you better manage subscriptions? Read on for possible ways to evaluate and handle your subscriptions and potentially save money.
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:
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Wondering how to manage recurring payments, 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 ensure you’re not losing money on things you have no use for.
To audit your subscriptions, you could start by:
Looking for ways to finesse your finances? Learn how PayPal can help you manage your money here.
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