When you subscribe to a number of entertainment services, it’s easy to lose track of how much you spend each month.
Now, a study has revealed how the creeping cost of such services can quietly drain your wallet.
While consumers imagine they spend $86 a month on subscriptions, on average, the reality is $219, according to the results of a survey from C + R Research. That is a difference of $133 a month, or $1,596 a year.
In the survey, researchers asked those with monthly subscriptions to estimate how much they spent each month on such services. Then, the survey participants were asked to compare those estimates with actual bills.
Nearly one-quarter of respondents underestimated the total they spend monthly by at least $200. That includes the 5% who guessed $400 or more below the actual total.
On the other hand, about one-quarter of respondents were within $25 of guessing the actual total they spend.
The largest number of respondents –30% — underestimated the total they spend by between $100 and $199 each month.
Here at Money Talks News, we frequently warn of the danger of signing up for free trial subscriptions, then forgetting to cancel them once the free period ends. The C + R survey underscores the damage that several subscriptions can do to your finances, even if you aren’t always aware of the full toll.
In fact, 74% of respondents to the survey admitted that it is easy for them to forget about monthly recurring subscription charges. And 42% said they have forgotten they were still paying for recurring monthly subscription services they no longer use.
The best way to avoid such costly bills is simply to avoid signing up for subscription services you don’t need. If you need a little inspiration to help you find the motivation to ditch these costly services, check out: