The Hidden Costs of Convenience
From streaming platforms and fitness apps to cloud storage and online newsletters, subscriptions have become a regular part of modern life. The convenience of automated payments, or auto-debits, means we rarely have to think about them. However, this
convenience has a downside. It is easy to sign up for a service and forget about it, leading to what is often called 'subscription creep'. These small, recurring charges, which may seem insignificant on their own, can collectively add up to a substantial amount each month, impacting your savings goals. A regular financial clean-up is essential to ensure you are only paying for services that you actively use and value.
Step 1: Conduct a Thorough Financial Audit
The first step is to get a clear picture of where your money is going. To do this, you will need to review your bank and credit card statements from the last three to six months. Log in to your bank’s net banking portal or mobile app and carefully scan each transaction. Look for recurring payments, no matter how small. Create a simple list or spreadsheet of all your subscriptions, noting the service name, the amount, and the payment date. Some fintech apps can also help by automatically detecting and listing your recurring payments from your transaction history. This audit will form the foundation for your decluttering process.
Step 2: Identify and Prioritise Your Subscriptions
With a complete list in hand, it's time to make some decisions. Go through each item and ask yourself a few critical questions: Do I still use this service regularly? Does it provide real value? Could I live without it? Be honest with your answers. It can be helpful to categorise subscriptions into 'Keep,' 'Review,' and 'Cancel.' Services you use daily or weekly are likely keepers. Those you use infrequently are candidates for cancellation. For some, like streaming platforms, you might decide to subscribe for only a few months a year to watch specific shows, rather than paying all year round.
Step 3: Cancel Unwanted App Subscriptions
Cancelling subscriptions tied to apps on your smartphone is usually straightforward, but simply deleting the app from your phone will not stop the payments. For Android users, open the Google Play Store, tap your profile icon, and go to 'Payments & subscriptions,' then 'Subscriptions'. From there, you can view all active subscriptions linked to your Google account and cancel the ones you no longer need. For iPhone users, go to your phone's 'Settings,' tap your name at the top, and then select 'Subscriptions.' This screen will show a list of your active and expired subscriptions, allowing you to cancel with a few taps. If you cannot find a subscription in the app store, you may have subscribed directly on the service's website and will need to log in there to cancel.
Step 4: Stop Auto-Debits From Your Bank Account
For auto-debits set up directly with a merchant, you have a few options. The first is to contact the company directly and ask them to cancel your subscription and stop the payments. However, an even more direct route is to manage the mandate through your bank. Thanks to Reserve Bank of India (RBI) guidelines, consumers have greater control over their recurring payments. You can log in to your bank’s net banking portal or mobile app and navigate to the section for 'e-mandates,' 'AutoPay,' 'Recurring Payments,' or 'Standing Instructions'. Here, you will find a list of all active mandates and should have the option to view, modify, or cancel them. This process, which may require OTP authentication, gives you the power to revoke payment authorisation directly from your end.
