This Sneaky Spending Habit Might Cost You More Money Than You Think

As fears of a recession loom large, some people have begun to reevaluate their spending habits. A small but potentially impactful segment of spending to look at is the money allocated toward everyday subscriptions.

In fact, “subscription creep” is a growing phenomenon that sneaks up on many. To help consumers combat its potentially negative effects, HuffPost asked personal finance experts to explain this concept and share their tips for keeping it at bay.

“Subscription creep is exactly what it sounds like — subscriptions ‘creeping up on you,’” said Lindsey Crossmier, a researcher and writer for MarketWatch Guides. “What once started as a few $10 or $5 subscriptions can quickly turn into $300-plus per month without you even realizing it.”

These charges tend to be automated and generally aren’t very large on the individual level, but they accumulate over time.

“Nowadays, almost everything has subscriptions ― streaming services, music, the gym or even coffee orders,” Crossmier said. “If you don’t track and pay attention to your subscriptions, you’re almost guaranteed to lose track and overspend on services you don’t even remember you’re paying for.”

And in the case of subscriptions like meal kits, forgetting to cancel can mean extra food waste in your home. Not to mention the lost cash.

“You might forget that you are subscribed to a service but are still making payments for it, essentially throwing money away each month,” said Rod Griffin, senior director of public education and advocacy at Experian. “Subscription creep is often hard to spot because it’s easy for small payments to slip under the radar, but the costs can add up quickly.”

In addition to your various subscription payments adding up, there’s also the issue of prices continuing to creep up for each product.

“Companies like streaming services, gyms or shopping sites that charge monthly raise their prices with little notice, often alongside new features, slowly bumping up your monthly charges over time,” noted Jack Howard, head of money wellness at Ally.

“Subscription creep is common because the subscription model is an increasingly popular one when it comes to everyday consumer categories, including snacks, games, clothing, makeup and other luxuries,” said Kimberly Palmer, a personal finance expert at NerdWallet. “Retailers offer subscription options to us because the model locks us in as repeat customers unless we cancel.”

Signing up for more and more subscriptions is easy, and free or discounted trial periods make the move even more enticing. But canceling is much harder.

“Many business models bank on people forgetting to cancel the subscription and/or making it annoying to cancel,” said “Crush Your Money Goals” author Bernadette Joy Cruz Maulion. “For example, I am planning to move and needed to cancel my gym membership, and they made me go through so many hoops to cancel it, I had to take time out of my work day to do it because they weren’t open after hours.”

She emphasized that people often delay canceling because it can require time and effort.

“Many people intend to cancel but either lose track or feel the small monthly cost isn’t worth the hassle ― until they see their bank statements adding up to hundreds or even thousands per year,” Maulion said. “Many people are essentially paying for things they no longer use, while feeling they can’t afford things they actually need.”

Indeed, a 2022 study from the marketing insights agency C+R Research found that 42% of consumers surveyed had forgotten they were still being charged for a subscription they were no longer using. The participants also underestimated how much they spent on monthly subscriptions by $133 on average.

“It’s incredibly easy for consumers fall trap to subscription creep,” said Alison Fyhrie, a financial advisor with Northwestern Mutual. “Free trial periods that roll into paid subscriptions, paperless billing and automatic renewals create the perfect storm to entice consumers to sign-up, forget about the service if unused and overlook ongoing charges ― especially if small.”

The “set it and forget it” format makes paying your bills easy as you don’t have to worry about deadlines or even log into your account to make a payment because it’s all done automatically for you.

“But most people don’t keep track of what they’re signed up for and how much they’re paying for each service, especially if prices go up without much awareness,” said consumer finance and budgeting expert Andrea Woroch. “Even if it’s only $10 per month, that’s still a waste of money that could be going to more important bills or financial goals like paying down debt or boosting savings.”

The fragmentation of spending today plays a big role in subscription creep as well.

“As more financial activity is spread across multiple cards, apps and accounts, it becomes harder to keep a clear view of where your money’s going,” said Chris Powell, the head of checking and deposits at Citizens Bank. “What used to be a single cable bill might now be split across five or six different streaming platforms, each billed separately and at different times.”

The sunk cost fallacy also plays into how some people allow subscription costs to add up over time.

“Once you’ve invested in a subscription, you may continue to pay for it even if you no longer use it, due to the psychological discomfort of ‘wasting’ the money already spent on the subscription,” Howard said. “Even if it’s not financially prudent, the fear of losing access to a service or the perceived benefits of a subscription can make it difficult to cancel.”

The good news is there seems to be increased awareness around this phenomenon, as evidenced by the rise of subscription management services and the FTC’s “click-to-cancel” rule.

“This rule requires businesses to have a simple subscription cancellation process, which will be enforced starting May 14, 2025,” Crossmier noted.

Recognizing the issue of subscription creep doesn’t mean you have to feel bad about loving your subscriptions.

“If you enjoy the products that you receive every month, then as a consumer, you might enjoy the ease of receiving it without having to take extra steps,” Palmer said. “Getting a box of clothes or snacks in the mail each month can be a fun pick-me-up.”

Sometimes subscriptions models can even help you save money on products or services you were going to buy anyway at a higher individual price. You can even shop around to find good subscription savings.

“For instance, wait to sign up for a service during a popular holiday savings event ― I scored Hulu for $1 per month during a Black Friday sale a couple years back,” Woroch said.

She recommended looking for coupon codes and ways to earn cash back for subscriptions services through deal sites like CouponCabin, which runs offers like 40% off streaming bundles.

“If you are enjoying your subscriptions and using them to their full advantage, think about how you’re paying for them as some cards in your wallet may give you more cash back for those services and help you actually pay off the bill,” Woroch added.

For example, some Chase cards offer complimentary DashPass access, and you can get cash back on popular streaming services with certain American Express options. There are ways to make subscriptions a more positive part of your life, rather than a money drain.

“Subscriptions can be great when they actually add value,” said Bola Sokunbi, the founder of Clever Girl Finance. “If your meal kit saves you time and reduces food waste, or your design software helps you earn money, that’s worth it. The trick is being intentional, with what you keep.”

You need to check in frequently to confirm you can afford to pay your subscriptions in full and remain aware of the charges.

“Subscriptions are super convenient, offering instant entertainment, fitness, food and more,” said Courtney Alev, a consumer financial advocate with Credit Karma. “One benefit to subscriptions, when managed responsibly, is that these recurring charges paid off on time and in full each month can help you establish a good credit history and improve your credit score over time.”

The impact on your credit score can be negative too, however.

“if you’re paying more subscriptions than you realize, it can both hurt your budget and impact your credit utilization ratio, which makes up 30% of your FICO credit score,” said Monique White, an accredited financial counselor and the head of community at Self Financial. “That’s why it’s important that each service you sign up for is accounted for, and fits comfortably in your budget.”

“Giving yourself a subscription audit, where you review all of your subscriptions at once and make an effort to cancel the ones you no longer enjoy. [It] can be time-consuming but useful,” Palmer said. “You might even want to consider canceling all subscriptions in a ‘subscription detox’ to see if you really miss any of them and slowly add back in the ones you want.”

You can use a tool like Rocket Money or Trim to identify your subscriptions, and then cancel or pause the superfluous ones. Or you could take a more manual approach with a spreadsheet.

“Create a list of all your subscriptions so you never lose track of them,” Griffin advised. “Be aware of the current costs, when prices increase, and whether the service is actively being used. This can help you decide if it’s really something you need.”

He also recommended putting all your subscriptions on the same credit card so that you can more easily track those costs. Don’t forget to take note of annual subscription charges in addition to monthly ones.

“It’s also a good idea to sit down with your partner or roommate and flag any subscriptions you both use ― or, you could explore any bundling subscription options, such as Spotify Duo,” Crossmier noted.

Keep an eye out for redundancies in your types of subscriptions.

“Check for overlap,” advised Janelle Sallenave, chief spending officer at Chime. “For example, if you’re paying for multiple food delivery services like DashPass and UberOne, ask yourself if you really need both or if one will do the trick.”

Scheduling alerts can help you avoid auto-enrollment and billing for a service you don’t intend to use.

“If you sign up for a free trial, write a note on your calendar to cancel the subscription when the trial period ends,” Palmer said. “It’s easy to forget to do so otherwise.”

Remember you don’t have to wait until the end of a trial period to cancel, either.

“If you are on free trial for anything right now and you haven’t used it enough, cancel it now, not when the trial ends,” Maulion said. “I only sign up for a trial if I will use it immediately.”

Better yet, avoid enrolling in free trials that you aren’t even certain you will use.

“Don’t sign up for any free trials that require your credit card,” Griffin said. “That way if you forget about it, you won’t be at risk of being charged when the trial is over.”

You might consider following a one in, one out rule for your subscriptions as well.

“Every time you opt for a new subscription, follow the rule to cancel an old one,” Woroch advised. “It’s kind of like how you tell your kids to donate a toy every time they get a new one to avoid over cluttering your house.”

She also recommended prioritizing fully free subscription options.

“If you’re a Prime Member, you have access to Prime Video, so use it and cut back on other paid video streaming services,” she said. “Your mobile plan may also get you a deal for free video streaming services. Otherwise, stream video content for no cost through your local library’s digital platform.”

You might want to take these smarter subscription moves one step further.

“When you cancel a paid subscription, consider setting up an automated savings transfer for that same amount,” Powell suggested. “Redirecting those dollars into a rainy-day fund or savings goal turns small wins into lasting financial progress.”