Chances are, you have a variety of subscriptions that are charging recurring monthly payments on your credit card, but you may be throwing money out the window if you’re paying for memberships, you no longer use or need.
If it’s just a few dollars fee, you may not even notice it each month.
I spoke with a credit card expert, Sara Rathner from Nerd Wallet about how you can eliminate any unnecessary fees that may be flying under the radar.
“You need to be vigilant and take care of this. It is hard and it is annoying, but it's your money, and nobody else cares about your money as much as you do,” Rathner said.
Nowadays it can be easy to lose track of everything to which you’ve subscribed.
What’s not as easy is putting an end to it.
“It’s a lot easier to sign up for a subscription, especially a free trial that will eventually charge you, than it is to end a subscription,” she said. “Unfortunately, the obligation is on you to find these subscriptions on your credit card statements and cancel the ones you no longer need.”
There are budgeting apps that can help you cancel — but be careful. Some of the apps cost money for their services.
“So that's something to keep in mind that you may be just adding another subscription to your plate,” said Rathner.
Rathner said you should check your online banking or credit card app first, as some resources may already be available to you for free.
“Some credit card issuers have tools on their app or on their website when you're logged into your account to show you where your credit card information is saved,” Rathner said.
By looking at that information, you can make sure your credit card is being used in places you recognize. Sometimes fraudulent charges can start out small.
“And you want to pinpoint those things as quickly as you can, because those are often the first of several fraudulent charges, and then they get bigger from there,” she said.
Rathner said sometimes swiping a credit card doesn’t even feel like real money.
“There are studies that show that when you use credit cards, you tend to spend a little bit more. It just feels like you hand over plastic, and it doesn't feel real,” she said.
That’s why it’s important to know exactly where your money is going and how much.
“Because the answer might surprise you, I mean, lunch out, even at a fast casual place, can run you about $15 a pop,” she said. “Do that five days a week for a couple of years, and you're talking real money.”
Say you spend $15 eating your lunch out 5 days a week. That’s $300 per month and $3,600 per year. Maybe you consider packing a few days a week to help save.
“If more of your money than you realize is going into something that maybe isn't as important to you, then that's an opportunity to rethink your budget, rethink your spending, and put more of your money into the things that really matter for you," said Rathner.
Rathner said you don’t need to cut out everything— it’s important to keep room in your budget for things that bring you joy.
So, if getting coffee every morning makes you happy, you should do that. Set money aside for that, but make sure you plan your budget accordingly and maybe you cut back and save your money in other areas.
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