Today we 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 $1889 per Month on the Ten 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 $1400 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.
41% of consumers think it will take more than a year for the economy to return to pre-pandemic levels.
Although the $1400 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.
The majority of Americans (59%) plan to use their stimulus checks to pay household bills.
Other consumers plan to put it towards savings, to keep their family fed and to pay off their credit cards.
Housing Costs, Utilities, Internet, and Mobile Top Consumers Bill Pay Priorities
Utilities (78%); cable/internet (35%); rent (33%) or mortgage (32%); auto insurance (32%); and mobile phone (32%) top the list of bills consumers plan to pay with their $1400 checks.
How far the $1400 Stimulus Checks Will go Towards Paying Housing Bills
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 ten most common bill pay categories: