2023 State by State Bill Pay Market Report Reveals the Average American Now Spends Nearly $25,000 per Year on Household Bills
This article originally appeared on Hawai’i Free Press
2023 State by State Bill Pay Market Report Reveals the Average American Now Spends Nearly $25,000 per Year on Household Bills from doxoINSIGHTS’, August 1, 2023
Today we released a new report that reveals that while the average U.S. household spends $24,557 annually on the most essential household bills (which is 35% of the U.S. household median income of $70,784) and roughly $2,046 per month, many states rank well above or below this figure. As U.S. households continue to grapple with an increased cost of living, those living in Hawaii, California, New Jersey, Massachusetts and Maryland may be feeling more pressure as these states top the list as the most expensive, while West Virginia, Mississippi, Arkansas, Oklahoma and Kentucky are listed as the most affordable.
doxo’s 2023 State by State Bill Pay Market report takes a look at the $3.87 trillion U.S. consumer bill pay market, with specific state-level breakdown of the 10 most common household bill payment categories. The report, which reflects actual bill payment activity across more than 97% U.S. zip codes, reveals the most and least expensive states for Americans to live based on average spend per month on actual household bill payments.
This unique view of relative expenses, and how much of household income is required to cover bills in each state, is especially relevant given continued strains on household budgets due to inflation. A recent doxoINSIGHTS report found that three in four consumers (73%) say that inflation is impacting their ability to pay bills. 86% of consumers said they are worried about the impact that inflation will have on their financial health in the future, with 72% saying it would take six months or more until their household’s financial health improves.
“As consumers navigate their household bills in today’s volatile marketplace, bill payers may feel left in the dark, not fully understanding how much they are truly paying each month,” said Liz Powell, Senior Director of INSIGHTS at doxo. “Through doxoINSIGHTS, we provide consumers, businesses, and financial institutions with access to the broadest and most transparent data available on actual household spending for critical bills. Armed with this data and the doxo bill pay app, consumers can make more informed decisions, whether deciding to move to a cheaper state or working to grasp monthly expenses, doxo provides clear and concise data to shape a more informed bill payer.”
The findings outlined in the 2023 State by State Bill Pay Market report include, for each state, the total monthly spend for bills each month, as well as a breakout of each of the ten most common household bills including: Mortgage; Rent; Auto Loan; Utilities (electric, gas, water & sewer, and waste & recycling); Auto Insurance; Cable & Internet; Mobile Phone; Health Insurance (consumer paid portion); Alarm & Security; and Life Insurance.
The report shows that Hawaii residents spend $3,070 each month on the ten most common household bills, which is +50% above the national average. At the other end of the spectrum, households in West Virginia spend an average of $1,530 across the top ten categories, 25.2% below the average nationwide.
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