If you've ever signed up for an introductory trial offer or thought a trial subscription that was cancellable "at any time," was too good to resist, chances are you also know that dangers lurk around the bend. Seemingly low-cost subscriptions, especially when the first month or two are offered at a discount, can be traps that add up to big bucks each year.
Whenever you're faced with the temptation to sign up for a monthly payment subscription, it helps to figure the actual cost on an annual basis before you grab the "opportunity." While a few dollars each month seems reasonable enough, the yearly cost might be cause to pause.
Online subscriptions, payable through automatic recurring charges to your credit card or checking account, can be especially difficult to cancel unless you're very organized and keep impeccable records of sign-up dates and billing schedules. Too many people forget to monitor the charges and find that canceling is too much hassle.
Before you know it, those ‘few bucks a month subscriptions’ are costing you hundreds or even thousands a year. You’re signed up for Netflix and Hulu for movies and tv shows, Pandora Plus and Spotify for your music, you have the premium version of MyFitnessPal, you’re subscribed to Audible for audiobooks, you’re signed up for a dating site and who knows what else. Pretty soon, you have five or more $5 - $10 monthly subscriptions going at once!
It’s an easy trap, and businesses know this – which is why most are switching to subscription pricing models. You see this trend everywhere, from Adobe and Microsoft software to shaving and personal shopping companies.
