Stop Feeding Vampire Subscriptions And Save Your Holiday Budget

A Note From Natalie:

Hello and welcome to Forbes Advisor’s Weekly Brief, where we dive into the realities of consumer finance and empower you with knowledge to help make your financial journey easier.

Ah, the holiday season—a time for giving, celebrating and… realizing that your bank account has been quietly drained by long-forgotten subscriptions.

The average household juggles 4.1 active paid subscriptions, according to a survey by the credit building app Self Financial, which costs more than $40 per month.And here’s the kicker: Six out of seven respondents paid for at least one subscription they’re not using.

That means Americans are seeing ? almost $33 a month vanish into the ether on services they don’t even use. Amazon Prime leads the pack of forgotten subscriptions (30%), while Netflix and Disney+ hold the crown for the most neglected streaming platforms.?

As you prepare to splurge on gifts and travel this year, look for those silent budget vampires lurking in your bank account. In this newsletter, we’ll help you navigate the labyrinth of subscriptions and show you how to cancel what you don’t need—just in time for the holidays.

Very best,?

Natalie Campisi

Senior Staff Writer, Forbes Advisor

Stop Feeding Vampire Subscriptions And Save Your Holiday Budget

We’ve all been there, scrolling through your bank statement only to discover you’re still paying for a subscription you haven’t used in months. It’s the curse of the “vampire” or “zombie” subscription.

The good news is that identifying and canceling them isn’t as daunting as it sounds, and there are even consumer laws in place to protect you from unfair charges.

1. Identify Those Sneaky Subscriptions

The first step is to figure out where your money is going. Start by taking a closer look at your bank or credit card statements. You might be surprised to find multiple charges for services you don’t remember signing up for—or worse, haven’t used in ages.?

If combing through statements sounds like a chore, don’t worry—there are apps to do the dirty work for you. Rocket Money and Trim are popular options that not only identify all your subscriptions but help you cancel them with a few taps. These tools sync with your accounts and highlight recurring charges, so you can decide whether to keep or ditch those services.

2. Know Your Rights: The Negative Option Rule

There are two different rules to help you break free from those unwanted subscription charges.?

First up is the Negative Option Rule, your safeguard against surprise billing. If you’ve ever signed up for a free trial and suddenly found yourself being charged without warning, this rule has your back. Companies must give you a heads-up before charging you after a trial or for auto-renewals. No sneaky fine print or hidden charges allowed—if they didn’t clearly inform you, they’re likely breaking the law.

The Click-to-Cancel Rule is the hero of easy subscription exits. If you can sign up online, you should be able to cancel online just as easily—no endless customer service calls or obscure buttons required. If a company makes canceling difficult, that’s another red flag.

In short, these two rules make sure you’re in control. The law is on your side whether you're avoiding hidden charges or canceling with a click. And if a company doesn’t play by the rules, you might just be entitled to a refund.

3. What to Do If You’re Charged Unlawfully

If you’ve been charged unfairly, don’t just let it slide. Start by contacting the company and explaining your issue. Reference the Negative Option Rule—even if they didn’t directly break the law, this often motivates them to fix the problem. Companies generally don’t want to mess with potential legal violations.?

If a company charges you without your permission or after you have canceled a subscription, the FTC recommends consumers take the following steps:

• Monitor your bank or credit card statements for unauthorized charges after canceling a subscription.
• ?File a chargeback dispute with your credit or debit card provider if a company continues charging you after cancellation.
• Dispute a charge? on your card's website or call the number on the back of your card.
• Follow up with a certified letter to protect your rights and keep a record of all communication.
• Save all related documents—letters, emails, and notes—in case you need to prove your claim.

Be sure to gather all evidence of wrongdoing, including bank statements and your usage of the product. If you can prove that you haven’t used the product, whether it’s an app or a gym membership, you may have a stronger case.

You can also file a complaint with the Federal Trade Commission (FTC), which enforces the Negative Option Rule, or your state’s attorney general.?

Related Stories:?

• 5 Tools To Help You Cancel Unwanted Subscriptions
• How To Create A Budget For A Middle-Class Family
• How Annual Credit Card Benefits Helped Me Save Over $6,400 On My Holiday Vacation

Here’s what else is going on in the news this week:

• How You Can Save On Pricey Holiday Flights With Travel Rewards In 2024 Maximize holiday travel rewards by booking early, using points for flights or hotels and leveraging credit card perks like airport lounges.
• Costumes, Candy And Smart Savings: Your Guide To A Budget-Friendly Halloween 2024 Consumers are expected to spend over $11 billion on Halloween this year, though cautious spending means many are opting for DIY or sustainable options. In our latest post, we’ll show you the best ways to scare up some savings.