Log in to your Skype account at Skype.com. The site will ask you for your username and password.
Go to the "Subscription settings" link on the right side and click it.
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Click on the "Cancel subscription" link on the left side of the page. On the next screen, the system will ask you whether you are sure that you want to cancel your subscription. Click the "Yes" button. You will be prompted through the final steps.
Disable Skype's auto-recharge by logging in to your account at Skype.com and going down to the bottom of the page where you will find payment settings.
Click the "View settings" link. It will take you to your auto-recharge page. On it, click the "Disable" auto-recharge link.
Log in to your Paypal account, if that is how you are funding Skype. Go to the profile tab below and to the right of the "My Account" tab.
Click the "Pay List" link in the center of the next page.
Find Skype in the list and click the link to adjust the billing details. Click the "Cancel" link under status. This will disable automatic payments being allowed to Skype.