The Hidden Cost of Subscriptions (and How to Cut Them)

Subscriptions — streaming services, apps, software, membership clubs — promise convenience and access. But over time, they add up. What once felt like $5 or $10 here and there can easily balloon into hundreds of dollars a year without you realizing it.

A 2025 MarketWatch survey found that the median American spends about $60 per month on subscription services (about $720 per year).¹  Some households pay even more. Many consumers report “subscription fatigue” — feeling overwhelmed by the number of services they maintain.² 

In this post, we’ll cover:

• The major kinds of subscriptions that tend to trap people
• How you get stuck in auto-renewal or “set-and-forget” habits
• Real-world studies & data that back this up
• Practical, step-by-step strategies to cut subscriptions (without feeling deprived)
• Bonus tips: what to do with the money you free up

Why Subscriptions Get You Trapped

1. Auto-renewal & “set-and-forget”
   Many subscriptions renew automatically by default. You sign up, forget, and payments continue. Some services even hide cancellation links or make cancellation non-intuitive. A study on subscription/cancellation design revealed that some services require users to jump through hoops — such as calling customer service, navigating hidden menus, or entering special key phrases — wasting time and causing many users to give up.³
2. Low monthly cost, disguised impact
   A $10 subscription feels negligible. However, 10 such services cost $100 per month, totaling $1,200 per year. Because each is “small,” they don’t get enough scrutiny. The real cost is hidden from you in plain sight, disguised as small, manageable amounts.
3. Feature overlap or redundancy
   You might subscribe to multiple apps that do similar things: multiple cloud storages, VPNs, music + video bundles, etc. For example, many people have a Netflix subscription, but then they also have a Peacock, Hulu, Disney+, and so on. While each of these subscription platforms has its own unique movies and shows, unless you’re watching each platform multiple times a week, it makes more sense to only have one or two of them at a time.
4. Trial-to-paid traps
   Free trials are popular marketing tools for subscription services. Many people forget to cancel before they convert to paid plans. Research suggests that companies design trials and renewal systems to benefit from “inattention” — knowing many users simply won’t cancel because of friction or oversight.³
5. Price creep & hidden upsells
   Over time, many subscriptions increase in price or introduce “premium tiers” or add-ons you’re automatically enrolled in unless you opt out. What started as a $6 may have jumped to $10. That’s about $50 more per year–and when you multiply that across multiple services, the total adds up fast. 

Here are some subscription categories that often lurk unnoticed:

• Streaming (Netflix, Disney+, Hulu, etc.)
• Music, podcasts, audiobooks (Spotify, Audible, YouTube, etc.)
• Cloud storage/backup (Dropbox, iCloud, Google One, etc.)
• Productivity/software tools (Office 365, Photoshop, Canva, SaaS tools, etc.)
• App subscriptions on phone (fitness apps, meditation apps, news, etc.)
• Game/console passes (PS+, Xbox Game Pass, Steam, etc.)
• Memberships (gyms, clubs, magazines, etc.)
• Food/meal kits (HelloFresh, GreenChef, etc.)
• Beauty/grooming boxes (beauty boxes or salon memberships, etc.)
• Security (VPNs, Ring, domain hosting, etc.)

Strategy: How to Cut Subscriptions — Step by Step

Here’s a playbook to audit and cut subscriptions painlessly:

1. List everything
   Use a bank/credit card statement or subscription manager app (e.g. Rocket Money, Truebill)–another subscription service to help manage your subscription (ironic right?) to create a simple spreadsheet to track the following: name, cost, renewal date, and last use.
2. Rate use vs value
   Once you have your list, go through and for each subscription, ask:
   • How often do I use it?
   • Do I get real benefit (not just “I pay for it just in case”)?
   • Could another subscription do the same job more cheaply?
   • Do I have another subscription that does the same thing, and could I alternate between them to save money? (for example, video streaming or music subscriptions).
3. Pause, downgrade, cancel
   • Pause – the subscriptions that aren’t used often or serve the same purpose as another one.
   • Downgrade to a lower plan – the subscriptions that are used less frequently but still useful to the lowest beneficial tier.
   • Cancel entirely – the subscriptions that are hardly or never used, or that don’t allow pauses.
4. Time cancellations smartly
   • Cancel before renewal dates – if they allow, set a date for your subscription to be paused/cancelled–and use calendars or reminders to review them quarterly or yearly.
5. Be persistent with cancellation
   If cancellation is buried, write to support or search “how to cancel [service name]” — many guides exist. Don’t let friction stop you.
6. Bundle or consolidate
   Switch to bundles (for example, streaming + music bundle) or find a single service that covers multiple functions.
7. Reassess every few months
   Because your habits and needs change, do periodic audits–add those that you need and remove those that aren’t needed.

Bonus: What to Do with the Freed Money

• Move it into your emergency fund (read our blog series on Emergency Funds to learn more)
• Pay off high-interest debt (Student loans, car loans, etc.)
• Invest (even small amounts–every bit counts)
• Use it for something meaningful (experiences > stuff)

Conclusion

Subscriptions are financial “leaks” that quietly drain money until you look closely. The trick isn’t to eliminate all subscriptions — many are worth it — but to keep only those that provide real value to you.

If you go through the steps above — listing, rating, canceling, bundling — you may find multiple hidden costs you can eliminate. Those dollars reclaimed can fuel your savings, debt payoff, or other important financial goals you may have.

– Brendan Tiedeman, CPA

Sources:

1 – Crossmier, L., & Haverstic, C. (2025, July 17). Subscription fatigue: 1 in 3 Americans are canceling subscriptions to save money. MarketWatch Guides. https://www.marketwatch.com/financial-guides/banking/subscription-fatigue-survey/

2 – Commisso, D. (2023, November 16). One subscription too many – video streaming reaches an inflection point as consumers report feeling “subscription fatigue.” CivicScience. https://civicscience.com/one-subscription-too-many-video-streaming-reaches-an-inflection-point-as-consumers-report-feeling-subscription-fatigue/

3 – Sheil, A., Acar, G., Schraffenberger, H., Gellert, R., & Malone, D. (2024, March 14). Staying at the Roach Motel: Cross-country analysis of manipulative subscription and cancellation flows. arXiv.org. https://arxiv.org/abs/2309.17145