The story of 35-year-old Brooklyn software engineer Eleanor Louis is the story of every other person today. Eleanor is paying every month for a video game she has no interest in. She says, ‘I haven’t played this game in 5 years. But I don’t understand how to get rid of it…’ This is just a glimpse. If you dig through your credit card statement or UPI auto-debit history, you’ll be shocked. There you’ll find a long list – streaming apps, cloud storage, e-commerce site prime memberships, gym and fitness apps, and even RO machines… everything has moved to a subscription model. And what’s more, now there’s another subscription hidden inside a ‘subscription’. Take the base pack of any OTT platform, then there’s a separate cost for ‘premium’ to watch content without ads or live sports. And to remember which recharge is expiring when, you need to join yet another app that tracks all subscriptions.
One click, but cancelling them is costly According to a study by the British platform ‘Bango’, an average person in Britain and America is spending approximately 5,700 to 16 thousand rupees every month. According to a Harvard Business School report, 75% of companies selling goods directly to customers have adopted the subscription model. Professor Gil Appel of George Washington University says that companies cleverly sell things separately. For example, buy yogurt but take a spoon on subscription. Normally, this is not possible, but in the world of apps this is common. The most complicated aspect of this is ‘cancellation’. In companies’ apps, ‘subscribing’ is easy, but cancelling it is extremely difficult. The process is long and confusing, and one has to wait for a long time for customer care. Professor Appel says, ‘Next time when you click on ‘Start Subscription’ on any app, keep in mind – the beginning will seem easy, but the small portion deducted every month will make companies powerful and you helpless.’ Audit your statement, monthly plan better than annual According to American finance expert and author of ‘I Will Teach You To Be Rich’ Ramit Sethi, the most effective way to escape the subscription trap is to spend consciously. Conduct a ‘ruthless audit’ of your bank statement, and any service that hasn’t been used in 30 days should be cancelled immediately without thinking.
Cancel any ‘free trial’ immediately after signing up, so that you can take advantage of the trial period and also avoid money being deducted by mistake in the future. Monthly plans are better than annual discounts because money being deducted from your pocket every month keeps you alert.
