Latest doxoINSIGHTS consumer survey and financial data shows only very short-term relief for housing, utilities, and other essential bills; even so, 90% of consumers feel the funds will help their financial health
SEATTLE – March 8, 2021 — doxo, the innovative web and mobile bill pay service, today released new doxoINSIGHTS household consumer survey and financial data showing that the latest $1,400 stimulus check will provide only very short-term relief for most American households. According to doxo’s recently released 2021 U.S. Bill Pay Market Size & Category Breakout report, the average U.S. household spends $22,668 per year, or $1,889 per month on the 10 most common household bills, which suggests that the American Rescue Plan’s $1,400 stimulus checks will not even cover a month’s worth of household bills for most Americans.
Consumers Spend $1,889 per Month on the 10 Most Essential Household Bills
According to doxoINSIGHTS’ 2021 U.S. Bill Pay Market Size & Category Breakout report:
- Americans spend $2.91 trillion annually – one fifth (20%) of all U.S. consumer spending – across 10 primary bill payment categories.
- The average household spends $22,668 per year, or $1,889 per month on household bills.
While the $1,400 amount is the largest pandemic-related stimulus check to date, doxo’s data shows that the typical household will see less than one month of coverage (just 22 days on average) for their most essential household bills.
90% of Consumers Feel the Stimulus Check Will Improve Their Financial Health
Even though the relief is short-term, doxo’s latest survey of household bill payers indicates very strong support from consumers. An encouraging nine in ten people believe the stimulus checks will make a positive impact on them personally. Although the $1,400 will help, household finances are still severely stressed, with 41% of consumers expecting it to take more than a year for their financial health to return to pre-pandemic levels.
“While it can be disheartening to see the math around how far the stimulus check will stretch when it comes to household bills, every little bit helps Americans during these tough times,” said Jim Kreyenhagen, VP of Marketing and Consumer Services at doxo. “While it may be short-term relief, our survey data shows that the vast majority of Americans believe the stimulus checks will help improve their own financial health in 2021.”
Housing Costs, Utilities, Cable/Internet, and Mobile Top Consumers’ Bill Pay Priorities
Additionally, doxo’s survey found that the majority of Americans (59%) plan to use their stimulus checks to pay household bills, with either mortgage (32%) or rent (33%); utilities (78%); cable/internet (35%); and mobile phone (32%) topping the list.
Breaking out the average amount spent per year on household bills, this is how far the $1,400 stimulus check will go toward each of the 10 most common bill pay categories:
|Bill Pay Category||Average Amount Paid/Month*||Amount $1,400 Stimulus Check Will Cover|
|Auto Loan||$412/month||~3 months|
|Auto Insurance||$186/month||~7 months|
|Cable & Internet||$116/month||~12 months|
|Health Insurance||$113/month||~12 months|
|Mobile Phone||$103/month||~13 months|
|Life Insurance||$89/month||~15 months|
|Alarm & Security||$87/month||~16 months|
*The sum of each bill pay category totals more than the average monthly household payment of $1,889 because the $1,889 per household total takes into account the percentage of households that have each bill category.
This doxoINSIGHTS data and other reports on the bill pay market can be found at www.doxo.com/insights.
doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo’s unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over four million paying consumers across over 90% of U.S. zip codes. doxo’s payment network covers over 75,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxoINSIGHTS reports – uncovering key trends for household financial health and bill payment behavior.
doxo provides simple, secure all-in-one bill payment to any biller, with any payment method, on any device. A doxoPLUS subscription adds free bank payments and five essential financial protections that boost household financial health. Through these services, doxo currently serves over four million paying users who can make payments to over 75,000 local and national businesses, making doxo the largest bill pay directory in the nation. Billers on the network get paid directly, fast and free – and consumers have complete bill pay independence over when and how they pay their bills. doxo expanded its user base by more than 70 percent in the past year and is expanding its team to further accelerate growth and change the bill pay landscape to focus on the customer. doxo investors include MDV, Sigma Partners, and Bezos Expeditions. doxo is based in Seattle, WA. For more information visit www.doxo.com.