Consumers save £400 a year by cancelling subscriptions but still losing money to direct debit trap

New research from HSBC has revealed that while consumers are actively cutting back on subscription services, many are still losing money to ‘invisible spending’ – particularly through automatic payments they forget to cancel.

The survey of 2,000 UK adults, released as part of HSBC Invisible Spending campaign, found that people are saving an average of £34 a month (£408 a year) by cancelling subscriptions. The most axed services include streaming platforms (51%), music services (30%) and delivery memberships such as Amazon Prime (29%).

But convenience comes at a cost. Despite these savings, the average person is still wasting £61 annually on services they no longer use – simply because they haven’t cancelled them. Almost half (48%) say the ease of direct debits means they often delay cancelling, while 43% admit to keeping subscriptions ‘just in case they might use them again.’ A further 29% say ‘fear of missing out’ prevents them from cancelling.

Millennials (aged 29-44) are the most affected, both in savings and wasted spend. They’re cancelling more subscriptions than any other group –saving £37 a month – but also wasting the most, at £69 a year. They’re also the generation most likely to feel caught out by automated payments, with 54% saying direct debits delay their decision to cancel.

While people are consciously cutting back on recurring costs, many struggle to stay disciplined in other areas. Over six in ten (62%) people admit they often make impulse purchases – a figure that rises to 71% among Gen Z and Millennials. Boredom (44%) and day-to-day stress (41%) are the top triggers.

HSBC says that this battle between planned saving and spontaneous spending highlights a clear demand for better financial management tools. An overwhelming 95% of people said they would find it helpful if their banking app clearly showed all their subscriptions in one place. 

Sabine Fichaux, Head of Transactional Banking at HSBC UK said “Subscription services have made life more convenient – but they’ve also made it easier to lose track of what we’re paying for. Our research shows that people want clarity and control, whilst still budgeting for the things that matter to them.”