Usage-Based Billing on Annual Plans - When Does Usage Actually Get Charged?

Hey everyone,
I’m setting up usage-based billing and honestly I’m a bit scared right now.
So from the docs it says usage gets charged “at the next renewal date.” But what if someone is on an annual plan? Does that mean I only collect their usage once a year after they’ve already used everything??
Because here’s my problem - my subscriptions are cheap but my API calls are expensive. So someone could pay like $100 for an annual plan, rack up thousands in usage over the year, and then when the bill finally comes due after 12 months… their card fails or they just cancel.
And I’m sitting here having already paid my API provider out of pocket the whole time. I’m a solo dev, I don’t have that kind of liquidity. Something like this could genuinely put me into debt.
Please tell me I’m misunderstanding something here? Does usage maybe get billed monthly even on annual plans?
How are you all handling this?