Buzz
Image Credit: SEAN GLADWELL/Getty ImagesWe’ve all been there: A gym membership demanding a certified letter to cancel, a mysterious app charge that keeps reappearing, or a streaming service that forces you through endless steps to unsubscribe. Relief is coming soon, as the Federal Trade Commission has introduced the Click to Cancel rule, designed to simplify ending any subscription draining your finances.
Although the rule won’t take effect immediately, its advantages will be significant. In the meantime, you can take steps to save hundreds of dollars. Learn everything about the Click to Cancel rule and how to manage your subscriptions effectively now.
What Click to Cancel Will Do
The new regulation mandates that businesses ensure canceling subscriptions is just as straightforward as signing up. No more navigating through endless screens or enduring lengthy customer service calls to end a membership. If signing up takes just one click, canceling should be equally simple.
Businesses that ignore the new rule may face civil penalties for non-compliance.
When Will Click to Cancel Come Into Effect?
The Federal Trade Commission has allowed companies 180 days to adhere to the new rule, meaning the current cumbersome system—complete with lengthy calls and confusing cancellation policies—will remain in place until April.
How to Find Subscriptions You Aren't Using
Chances are, you might not be aware of how many unused subscriptions you’re paying for. A C + R research survey from 2022 revealed that while people estimated spending $86 monthly on subscriptions, their bank statements showed they were actually paying nearly 2.5 times more: $219 per month.
Luckily, there are simple ways to identify these financial drains now—whether you prefer to start saving immediately by canceling or wait for the new rules to streamline the process of cutting unnecessary subscriptions.
Do a quick financial audit
Review a year’s worth of bank and credit card statements to spot any recurring charges.
Review a full year’s worth of statements, as some subscriptions are billed annually.
Highlight any charges you don’t recall authorizing, and evaluate how often you use the other subscriptions. Consider canceling or pausing a streaming service until your preferred show returns, or reducing the frequency of a box subscription that’s accumulating unused items.
Let a little tech magic help you find and eliminate unwanted subscriptions
Several apps and services can simplify the process by linking to your accounts and identifying subscriptions to ensure you truly want to keep paying for them. Some even go a step further, allowing you to cancel unwanted subscriptions with a single click. Here are a few options to explore.
Trim by OneMain
Trim securely links to your accounts, identifies subscriptions, and offers a Bill Negotiator feature to potentially lower costs for services like cable, internet, and wireless. (Note: They retain 15% of any savings they secure for you.)
To enable seamless cancellations, some financial apps and services charge subscription fees for premium features. Ensure the savings outweigh the cost before committing to these services.
Rocket Money
This service identifies and cancels unwanted subscriptions or renegotiates costs for those you wish to keep. On the free plan, they take 30% to 60% of your savings, while the Premium plan ($6 to $12 monthly) lets you retain all savings.
Simplifi
Simplifi, a product from the well-known financial firm Quicken, offers a robust budgeting tool that identifies your subscriptions, though you’ll need to handle cancellations yourself. The service costs $2.99 per month.
Don't forget to check your smartphone for unwanted app subscriptions
Apps can also enroll you in monthly or annual fees—often unnoticed until the charges appear on your account.
For iPhones:
To view app subscriptions on an iPhone, go to Settings, tap your name, then select Subscriptions. This will display a list of active and inactive subscriptions, including their costs, and allow you to cancel them directly.
For Android phones:
On your Android device, navigate to Subscriptions in Google Play. Select the subscription you wish to cancel, tap the cancel option, and follow any additional prompts.
Simply deleting an app won’t stop its subscription charges. You must follow the steps outlined above to halt recurring payments.
Consider going through the cancellation process now—even for subscriptions you want to continue to use
Initiating cancellation often triggers customer retention efforts, where you might be offered a discounted rate to stay. A quick chat or call could slash your subscription cost by 50% or more, allowing you to keep the service at a lower price.
