Hidden bills costs Brits £500 a year – leading expert explains how to avoid | Personal Finance | Finance

A retail guru has shed light on the importance of staying vigilant with “forgotten bills” to avoid squandering cash on unused services.

Startling figures from Citizens Advice, unveiled in March, indicate that a staggering 13 million people (26 percent of UK adults) have inadvertently signed up for a subscription in the past year. These unwelcome subscriptions have cost Brits a whopping £688million over the last 12 months.

On average, each person is out of pocket by £500 annually on various subscriptions, reports the Mirror.

The primary culprits for these unintentional subscriptions are automatic renewals (40 percent), neglecting to cancel after a free trial period (39 percent), and nearly one in four (24 percent) were under the impression they were making a single purchase but ended up in a cycle of recurring payments.

Retail expert Stephanie Hood from TheCMO.com is urging the public to routinely scrutinize their subscription services, set reminders to terminate free trials, and keep an eagle eye on bank statements for any surprise debits. She commented: “Many people don’t realise how much they’re spending on subscriptions they don’t use. A thorough review can reveal opportunities to cut costs and redirect those funds towards more important financial goals.”

“As living costs rise and many people find their expenses outstripping their income, it’s crucial for consumers to take charge of their finances. Businesses that depend on customers forgetting to cancel free trials are taking advantage of busy, financially strained individuals, and this practice is unacceptable. Consumers should have the option to choose whether their subscriptions auto-renew and decide if they want to continue after a free trial.”

Here are some top tips to manage your subscriptions effectively:

• Regularly review your subscriptions to identify and discontinue any unused services
• Set reminders to cancel free trials before they expire
• Keep a keen eye on your bank statements for unexpected charges
• And finally, consider setting aside money saved from cancelled subscriptions into a savings pot