As costs continue to increase across the country, many Americans worry about their bill-payment obligations, with 86% concerned about the inflationary impact, found a new survey from doxo, a bill-payment services company.
In the report, “The Impact of Inflation on Paying Household Bills in the New Year,” doxo found that beyond a general concern about inflation’s impact—the Consumer Price Index https://www.bls.gov/cpi/was up 6.5% in December from December 2021—73% worry that inflation may affect their ability to pay their bills. Seattle-based doxo analyzed aggregated bill-payment data from more than 8 million consumers and surveyed 2,018 households for the report.
In 2022, doxo said household bills increased 6% over 2021 and the average U.S. household spent $24,032 annually on bills. Utility bills alone increased 7% in the 2022 third quarter over the year prior.
Utility bills particularly concern consumers. Of the more than 70% who said they are concerned about paying bills in the future, 73% say they are most concerned about paying their utility bills, followed by auto insurance, 63%, and cable/Internet services, 63%. Mortgages, 39%, and rent, 33%, were least worrisome.
“The average American household has been hit hard by inflation in recent months and these findings show just how much those cumulative effects are weighing on Americans heading into this new year,” Liz Powell, doxo’s director of Insights, the company’s data analysis arm. “While Americans are understandably prioritizing their most essential bills, like rent and car payments, the majority worry about being able to pay utilities, cable and internet, and their mobile-phone bills in a timely manner.”
Inflation’s impact is felt beyond bill payments, too. Seventy-two percent say it would take six months or more for their household’s financial health to improve, with nearly 50% saying it would take more than a year.