doxo, the innovative web and mobile bill pay service, today released its 2021 United States of Bill Pay Report, a state by state look at the $4.40 trillion U.S. consumer bill pay market, with specific state level break out of the ten most common household bill payment categories. The report, which reflects actual bill payment activity across more than 30,000+ 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. Hawaii, New Jersey, California, Alaska and Massachusetts top the list as the most expensive, while West Virginia, Arkansas, Mississippi, Indiana and New Mexico were the most affordable.
This unique view of relative expenses, and how much of household income is required to cover bills in each state, is especially relevant given recent strains on household budgets. A recent doxoINSIGHTS report found that over half (57%) of Americans reported a reduction in income, with 42% of consumers missing at least one bill payment due to the financial effects of the COVID-19 pandemic. In addition, Pew Research Center found that one-fifth of adult Americans moved or knew someone who did due to the pandemic, with financial considerations being the biggest factor for those moves. While the average U.S. household spends $22,666 annually on bills, 20% of households spend roughly $1,889 per month; plenty of states rank well above or below this figure.
“Over the past year, the COVID-19 pandemic has impacted the financial stability of many Americans, with a dramatic increase in households delaying bill payments, increasing the use of credit to bridge income gaps, or even relocating to more affordable places to live,” said doxo co-founder and CEO Steve Shivers. “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, it is our hope that consumers can make informed decisions to improve their ongoing financial health, and the businesses and financial institutions that serve them can better align with their needs, especially during these trying times.”
The findings outlined in the 2021 United States of Bill Pay 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 & Phone; Health Insurance (consumer paid portion); Mobile Phone; Alarm & Security; and Life Insurance.
The report shows that Hawaiians spend $2,731 each month on the ten most common household bills, 44.6% above the national average. At the other end of the spectrum, households in West Virginia average monthly bill payments of $1,485 across the top ten categories, 21.4% below the average nationwide. The 10 most expensive and least expensive states to live are outlined below.
10 Most Expensive States for Household Bills
|
State |
Monthly Bill Expense |
Percent of |
Percent +/- |
|
$2,731 |
41% |
+44.6% |
|
|
$2,562 |
36% |
+35.7% |
|
|
$2,529 |
39% |
+33.9% |
|
|
$2,484 |
38% |
+31.5% |
|
|
$2,464 |
36% |
+30.5% |
|
|
$2,356 |
33% |
+24.7% |
|
|
$2,311 |
34% |
+22.3% |
|
|
$2,252 |
37% |
+19.2% |
|
|
$2,199 |
36% |
+16.4% |
|
|
$2,188 |
34% |
+15.8% |
10 Least Expensive States for Household Bills
|
State |
Monthly Bill Expense |
Percent of |
Percent +/- |
|
$1,663 |
33% |
-12.0% |
|
|
$1,655 |
40% |
-12.4% |
|
|
$1,622 |
39% |
-14.1% |
|
|
$1,619 |
37% |
-14.3% |
|
|
$1,612 |
34% |
-14.7% |
|
|
$1,608 |
40% |
-14.8% |
|
|
$1,597 |
34% |
-15.5% |
|
|
$1,567 |
42% |
-17.0% |
|
|
$1,534 |
40% |
-18.8% |
|
|
$1,485 |
39% |
-21.4% |
*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage). See report for details.
To view more from doxoINSIGHTS and its 2021 United States of Bill Pay Report including a full breakdown of the amount paid in household bills across all of the 50 states, click here.
About doxoINSIGHTS
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 4 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.
About doxo
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210415005277/en/