The 2021 Hidden Costs of Bill Pay report uses doxoINSIGHTS data combined with other research to provide a comprehensive look at America’s top concerns while managing and staying on top of bills. The Hidden Costs of Bill Pay report, like last year’s, draws on a mixture of original doxo data and authoritative sources like the Federal Reserve, the CFPB, and the FTC. Below, see highlights from the report.
The Hidden Costs of Bill Pay report, like last year’s, draws on a mixture of original doxo data and authoritative sources like the Federal Reserve, the CFPB, and the FTC. See highlights from the report, or download the full pdf below.
The average household spent $925 on the hidden costs of bill pay in 2021:
The report uncovers $925 in additional costs each year that the average household pays in “hidden costs” on top of their average bills. This is a substantial increase from last year’s report, which broke down the same costs and found that they amounted to an average of $577 per household. See how the costs break down this year:
$684 in Added Costs of Credit
doxo analysis quantifies the specific interest rate impact of a 35 point improvement in credit score, resulting in an annual savings of $684 for the average household when considering the three most common forms of consumer debt (mortgage, auto loan and credit cards).
$119 in Late Fees
While the average cost of late fees across all households is $119 annually, among households that have one or more late fees, the cost is $313 annually. Since late fees can directly impact a household’s credit score, they are even more costly than the numbers show.
$97 in Overdraft Fees
Banks charge consumers over $12 billion each year on overdraft fees. 30% of households report having one or more annual events. Bill payments, which are predominantly drawn from checking accounts, are the main cause of bank overdrafts each month. While the average cost of overdraft fees across all households is $97 annually, among households that have one or more overdraft fees, the cost is $322 annually.
$26 in Identity Fraud
While total identity fraud losses reach $17 billion in annual costs, much of this is absorbed by card issuers and merchants. Even so, the average household out of pocket costs for identity fraud still amounts to $3.3 billion, or $26 per household each year. These are just the direct costs, not including the time and expense consumers spend to restore and repair their identity records once compromised.
See the full report by downloading the pdf below, or read doxo’s detailed breakdown of the report’s findings, with images and charts, here: Hidden Fees on Bill Payments Cost the Average Household $925 in 2021