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Subscription Costs – Cancel or Try to Hold On

For my own personal business, I have several tools that I use OFTEN when I have work. Tools like Canva Pro, Social Curator, Elementor Pro and so on and so forth. I’ve had them for YEARS and they have paid for themself every year, up until now.

Here’s my dilemma.

This past week as I was working on my current bill pay schedule ie budget for the next month, I decided I would just cancel Canva as I haven’t used it at all this year and frankly, finding has been harder than it’s ever been. My thought was I can cancel my annual subscription (currently $119) and renew later when I have work.

I logged on to do just that and take that $119 back into my every day budget. And then I realized that if I cancel, yes, it will save me $119 now, but re-upping will put my rate at $145 annually (or higher if they go up in price.)

I’ve got pretty decent and in some cases, substantially good annual rates because I’ve had these tools so long and have the rates locked in. While Canva is just a $25 difference, some of them are hundreds per year in savings. And yes, that’s per tool.

What do I do?

Canva is the only one that will renew in the next month so I have to make a decision on it. The big ones all renew in the December/January time frame so I do have some time to turn things around. But I hate to lose that savings. Ugh.

I’m kind of inclined to let Canva go, it is just a $25 difference and I can use the free version in a crunch. But the others…not so easily replaceable and the savings loss would be significant if I cancelled and then renewed.

Sidenote: there are other subscriptions that I have;

1) Transitioned from annual to monthly for the time being. This helps with my monthly budgeting even though I am paying a premium. I will go back to annual as soon as I am able.

2) Cancelled – these are mostly entertainment subscriptions. But I didn’t think twice about them.

3) Am looking to replace. I changed my Dropbox subscription to monthly versus annual and am considering other options to replace it for the long run. Google One, Apple Storage, etc. are both being evaluated. I want to make sure they offer the security and integrate well with my current tech stack, in addition to the pricing before I make a move.

I’d love to know your thoughts, specifically on subscriptions where I would love significant savings if I end up cancelling them and then needing to re-subscribe down the road.

Hope

Hope is a resourceful, solutions-driven online business manager with over two decades of experience helping clients streamline operations, manage projects, and grow their businesses through digital marketing and technology.

But life has a way of rewriting your plans.

A year ago, Hope made the decision to move in with her aging parents full time – a season she wouldn’t trade, even as it came with its own financial and emotional weight. Earlier this year, she lost her mother, and is now walking the tender, disorienting path of grief while learning what “forward” looks like from here.

Hope came to the Blogging Away Debt community in 2015 as a single mom raising five foster and adoptive children. She’s written through job changes, financial setbacks, and the bittersweet transition to an empty nest. Her kids are finding their footing in the world now – and so is she.

Rooted in faith and fueled by the same perseverance she’s brought to every hard season, Hope is ready to face her finances with fresh eyes and an honest pen. She believes that clarity, courage, and community can change the trajectory of anyone’s story including her own.

She lives in Austin, TX with her dad, loves adventures with her dog Addie, and is figuring out, one step at a time, what this next chapter is meant to be.

3 Facts You Should Know About Debt in the U.S.

by Semify

Debt is a significant financial concern that impacts many people. When you understand the facts and consequences of debt, it can help you make informed decisions when managing it. This article explores three essential facts about debt in the U.S., highlighting the prevalence of wage garnishment, Chapter 13 bankruptcy, and the staggering value of loans held by U.S. commercial banks.

1. Wage Garnishment and Debt

Wage garnishment occurs when the debtor’s earnings are withheld to pay an outstanding debt. An individual finds themselves in wage garnishment when as a debtor, they don’t make payments, or the debt is in default. When an individual is subject to wage garnishment, it significantly impacts the debtor’s ability to pay their other bills. As a result, they may not be able to meet their basic needs.

When they can’t pay for their basic needs, it can also make it challenging to recover financially over the long term. When it comes to wage garnishment, some laws and rules control the garnishment. These rules vary based on each state and the type of debt. When debtors understand the regulations, it helps them navigate their financial situation better. They also understand which solutions are available to them.

2. Chapter 13, Bankruptcy and Debt Management

Chapter 13 bankruptcy is a legal process that helps debtors keep their property while repaying debts over an extended period. According to U.S. Courts, this period is usually three to five years. When debtors file Chapter 12 bankruptcy, it allows them to restructure their debts. When they do this, they can create a more manageable repayment plan. A manageable repayment plan gives debtors a way to gain control over their finances and avoid having to liquidate assets.

When debtors file Chapter 13, they can keep their property while working towards paying their debts. Chapter 7, on the other hand, requires debtors to turn their assets into cash to pay off their debts. Chapter 13 bankruptcy gives debtors a chance to rebuild their financial position when they follow a court-approved repayment plan. It can offer a fresh start and a path toward improved financial stability.

3. Loans Held by U.S. Commercial Banks

The size of debt in the U.S. is highlighted by the value of loans that are held by U.S. commercial banks. According to Statista, as of August 2022, the value of loans held by U.S. commercial banks was more than USD 17.3 trillion. The loans in the U.S. represent diverse borrowers. The borrowers include institutions, businesses, and individuals. The loans cover different types of debts. The most common debts in the U.S. include car loans, mortgages, and student loans.

The debt in the U.S. is significant not just for individuals but also for the country. It has impacts on spending, interest rates, and financial stability. When there is out-of-control debt in the U.S., it can prevent growth and productivity. The resources used to address the debt could have been used for productive investments, innovation, and infrastructure development. High levels of debt can reduce consumer and investor confidence, potentially leading to reduced spending and investing.

Debt is a widespread facet of personal finance and the broader economy. When the facts about debt in the U.S. are understood, people have the power to make informed financial decisions. When individuals can manage their debt, they can take other steps, like exploring options and finding professional help when needed. When individuals make informed decisions, they can achieve financial security and long-term health. Understanding personal debt and the debt in the country is only the first step. From there, people must make the best choices when it comes to spending.