£100 warning over ‘forgotten’ subscriptions in bank accounts | Personal Finance | Finance

As Britons look to clean up their lives at the start of the year, whether it means exercising more or drinking less, a financial detox promises real benefits.

Experts say removing ‘financial clutter’ from bank accounts, such as forgotten subscriptions or rip-off insurance policies, broadband or phone contracts, can deliver savings or more than £100 a month.

While they advise that drawing a distinct line between “wants” and genuine “needs” is vital.

Independent Financial Advisors (IFAs) have identified the simple checks and tips that people need to follow as they try to protect their household budgets.

Scott Gallacher, Director at Rowley Turton, advised: “Start by reviewing your last three months’ bank statements. 

“Look out for recurring payments you may have forgotten about, such as subscriptions, memberships or services that no longer add value. 

“When I recently did this for myself, I found I was paying for online subscriptions, streaming platforms and software I wasn’t using. By cancelling these, I saved over £100 per month—a small effort with a big payoff.”

He added: “Another key step is to shop around for better deals on utilities and insurance annually. 

“With energy prices still high, even modest changes in providers or plans can lead to significant savings. Many people are surprised at how much they can save just by renegotiating contracts or switching to more competitive rates.”

The energy price cap rose on January 1 and is predicted to go up again on April 1, but there are currently a number of deals that are around £150 a year cheaper.

Anita Wright, Chartered Financial Planner at Bolton James, told Newspage: “Many people unknowingly allow wants – those non-essential expenses – to consume resources better aligned with their needs and long-term goals. 

“Forgotten subscriptions and underutilised memberships are common culprits. Encouraging clients to review recurring expenses helps identify unnecessary outgoings. Comparing providers for utilities and insurance ensures people are not overpaying. Switching services can be an easy win for savings without sacrificing quality. 

“Categorising expenditures as ‘wants’ or ‘needs’ often reveals areas to cut back. Tools like budgeting apps can assist in providing a consolidated view of all direct debits and subscriptions. 

“Interest payments on high-cost debts can be a significant financial drain. Consolidating or refinancing debts, where appropriate, can free up funds for better uses.”

Colin Low, Managing Director at Kingsfleet, said: “In over 35 years of working with people and their money, it’s evident to me that those who build wealth over time have one simple thing in common: they spend less than their income. It’s a very simple rule, but it works every time. 

“The key to doing this is to budget effectively and a key issue that makes budgeting difficult in modern times is the proliferation of subscriptions that we take out and forget. 

“The prime culprits are TV streaming services and telecom contracts. I would recommend that everyone should have a single bank account which is only used for Direct

“A regular review of the Direct Debit account is, therefore, essential. Who are payments to? Are they essential? Are they still affordable? Can I do anything to make them lower such as shop around or cancel?”

Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments, said people also need to make the most of their investments.

“A comprehensive review will encompass several critical components and should scrutinise the performance of their current holdings, how each investment has fared against benchmarks, and assess whether the portfolio still aligns with their tolerance,” she said.

“Looking forward, the increased geopolitical uncertainty of the past year has underscored the importance of diversification, and with developed markets showing signs of saturation, emerging markets may offer attractive growth prospects. 

“Additionally, after such a strong performance this year, the technology sector may struggle to continue with the same momentum, so an allocation to more cyclical sectors could be beneficial in the new year.”

Riz Malik, Independent Financial Adviser at R3 Wealth, said a financial detox does not mean removing all the joy in day to day living.

“Cutting back on daily expenses like cappuccinos and lattes can positively impact your finances, but it’s important to remember that life is meant to be enjoyed,” he said.

“Instead of solely focusing on cutting costs, consider asking yourself: What are my financial goals, and am I on the path to achieving them? If you find yourself lacking the time or expertise to manage your finances effectively, don’t hesitate to seek professional advice. It should pay for itself in the long run.”

Kundan Bhaduri, Property Developer and Portfolio Landlord at The Kushman Group, said: “I’ve been helping clients declutter their finances with what I like to call “the three Rs”: review, renegotiate, and remove. 

“From forgotten subscriptions to overpriced insurance policies, we tackle it all, armed with budgeting tools and a bit of British frankness. 

“The question I always ask is, “Are you paying for what you need or just what you’ve forgotten?” 

“The result? Clients find themselves with unexpected savings that feel like discovering a tenner in last winter’s coat. And that’s the beauty of it—a leaner, more efficient financial lifestyle means less stress and more freedom.”