Study outlines why so many struggle with these recurring bills
Hardbacon, a personal finance application, has announced findings from a recent survey highlighting the challenges Canadians face with managing recurring subscriptions.
This survey, announced on Newswire Canada, involved 516 Canadians aged 18 and over, providing insights into how these subscriptions quietly accumulate and impact budgets.
The survey exposes a startling reality: 73 percent of Canadians confess to having subscribed to a service to leverage a ‘free trial period’ or a ‘promotional price,’ only to forget cancelling in time, thus getting inadvertently charged.
Moreover, 66 percent of Canadians have found themselves paying for subscriptions they had forgotten they possessed.
A significant gap between perception and reality regarding subscription counts was uncovered. Initially, respondents estimated owning around four subscriptions.
However, upon a detailed inventory of their actual subscriptions across various categories, it was discovered they had, on average, eight recurring subscriptions.
“This result shows how pernicious recurring subscriptions are from a budgetary standpoint, as few people know how many subscriptions they have or how much all these subscriptions cost them annually,” noted Julien Brault, CEO of Hardbacon.
The task of unsubscribing poses yet another hurdle, with 55 percent of Canadians postponing this chore due to its difficulty. The process often requires a phone call, despite the subscription being initiated online, adding an unnecessary layer of complexity to the unsubscription process.
Regarding payment methods, the survey revealed a diversified approach: 47 percent of Canadians use credit cards for their subscriptions, while 27 percent prefer Visa or Mastercard debit cards, 11 percent utilize PayPal, and 4 percent opt for prepaid cards.
These choices reflect a conscious effort by many to manage debt and simplify the unsubscription process.
The survey also ranked the 50 most popular recurring subscriptions in Canada, featuring giants like Amazon Prime and Netflix at the top.
Surprisingly, platforms that support subscription revenue for creators such as Patreon, Twitch, and OnlyFans also ranked highly, alongside Canadian favorites like CAA Roadside Assistance, Crave, CBC Gem Premium, and PC Optimum Insiders.
This Hardbacon survey not only outlines the popularity of various subscription services among Canadians but also shines a light on the significant challenges they face in managing these recurring expenses.
