Forgotten subscriptions costing Australians billions

Who doesn’t want an extra $100 in their pocket every month? But Australians, on average, throw away at least that much money paying for a subscription they forgot or no longer use.

Think additional streaming services, old paywall accounts, digital health, diet and workout programs.

Smart consumers can save an average of $1,261 (US$901) annually by cutting subscriptions and other recurring spending that no longer serve them, according to new research commissioned by ING Australia. .

A December survey of nearly 1,000 adults found that more than half (55%) are planning a financial spring cleaning this year.

Entertainment subscriptions (45%), gym memberships (15%) and fitness apps (12%) are the ones most likely to avoid non-essential outings.
Combined across the country, researchers calculate the potential savings could be more than $8 billion (US$5.7 billion).

Matt Bowen, Head of Daily Banking at ING, said:

“These findings show that small changes such as canceling unused subscriptions and monitoring non-essential calls can result in big savings for Australians when they need it most. ”

Creating reminders on your phone or setting up bank account reminders is a “quick win for keeping your spending under control and saving all that important bucks for next year,” Bowen said. said.

Polls show that a quarter of Australians who plan to go out every month admit they don’t make it all the way.

Two out of five respondents said they either forgot they arranged a payment or stopped using the services they paid for.

If they had previously taken steps to cut the excess, it would have taken an average of nine months to get around it, with delays costing them more than $960.

Interestingly, people’s New Year’s priorities seem to be going digital. Those planning to cut back in 2023 are more likely to target gym memberships (15%) than image editing and filter apps (10%).

Generation Z (63%) are more ready than Baby Boomers (40%), Gen X (41%) and Millennials (47%) to abandon digital outlets such as entertainment and gaming subscriptions is likely to be

Elsewhere, the majority of Australians agree to make scheduled calls by receiving email notifications (47%), setting reminders on the phone (27%) or writing them down in their diaries (21%). trying to keep

About 1 in 10 people rely on family and friends for reminders.

When it comes to managing money, 54% of Australians use their daily account to pay, while 43% prefer a savings account.

Despite difficult times, survey results show Australians are continuing to spend.

Nearly 6 out of 10 people who have already paid are still signing up for new subscriptions, paying an average of $48 (US$34) more per month in 2022.