Australians are collectively throwing away hundreds of dollars each month on subscriptions they no longer use, according to a new survey. Dubbed 'zombie services', these forgotten direct debits are draining household budgets, with the average consumer spending over $100 monthly on unused gym memberships, streaming platforms, and other recurring charges.
The Scale of the Problem
The survey, conducted by financial comparison website Finder, reveals that the typical Australian is paying for at least two subscriptions they have not used in the past month. This adds up to an average of $103 per person per month, or $1,236 annually. For a household of two, that figure doubles to over $2,400 a year wasted on services that are not being utilised.
Gym memberships top the list of zombie services, followed by streaming services like Netflix, Stan, and Disney+, as well as magazine subscriptions, meal kit deliveries, and cloud storage. Many consumers sign up for free trials and forget to cancel, or continue paying for services they rarely use out of inertia.
Who Is Most Affected?
Younger Australians are particularly susceptible to zombie subscriptions. The research found that Gen Z and Millennials are more likely to have multiple unused subscriptions compared to older generations. This is partly due to a higher uptake of digital services and a tendency to sign up for free trials that automatically convert to paid plans.
Finder’s personal finance expert, Sarah Megginson, said: 'It's easy to lose track of what you're paying for, especially when small amounts come out of your account each month. But these costs can really add up and eat into your savings.'
How to Identify and Cut Zombie Services
Checking bank statements regularly is the first step to identifying zombie services. Consumers should look for recurring charges they no longer need or want. Many banks now offer tools to track subscriptions, and there are also apps that can help manage and cancel unwanted services.
Megginson recommends conducting a 'subscription audit' every three to six months. 'Go through your bank statements and cancel anything you don't use. You might be surprised at how much you can save,' she said.
For those who want to keep a service but use it infrequently, consider downgrading to a cheaper plan or sharing a family plan with friends or family. Many streaming services allow multiple profiles, and some gyms offer off-peak memberships at a reduced rate.
Preventing Future Zombie Subscriptions
To avoid falling into the same trap, consumers should set reminders to cancel free trials before they expire. Using a dedicated email address for subscriptions can also make it easier to track what you have signed up for. Additionally, paying with a credit card that offers alerts for recurring charges can help keep spending in check.
The research comes as the cost of living continues to rise in Australia, with many households looking for ways to cut expenses. Eliminating zombie services is a simple and effective way to free up cash without sacrificing much in terms of lifestyle.
Finder estimates that if every Australian cancelled their unused subscriptions, the collective savings would exceed $20 billion per year. That is money that could be redirected towards savings, investments, or experiences that truly add value.
