The Hidden Costs of Bill Pay Report 2023
The 2023 Hidden Costs of Bill Pay report uses doxo INSIGHTS 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. See highlights from the report, or download the full pdf below.
The average household spent $1,268 on the hidden costs of bill pay this year:
These figures are 29% higher than they were for last year’s Hidden Costs of Bill Pay Report, which showed that the hidden costs of bill pay had an overall market impact of $128 billion, and an average annual cost per household of $986. Mostly moderate increases contributed to this spike, with credit impacts seeing the biggest increase, which is not surprising given rising rates across the board. Last year credit fees cost consumers an average of $658, as compared to $945 in this year’s report.
$945 in Added Costs of Credit
Staying current on bills and debt payments is a primary factor for strengthening credit. doxo’s analysis shows that staying ahead on payments and improving a credit score by 35 points can save the average household $945 per year in interest expense. The average U.S. household carries over $100,000 in revolving debt – between mortgages, auto loans, and credit cards, primarily – so boosting credit and qualifying for lower interest rates significantly reduces expenses.
$181 in Late Fees
Missing or paying a bill late often incurs late fees, and 31% of households reported incurring one or more late fees. This totaled $24 billion in household expenses, or $181 per household, as compared to a total of $20 billion, or $155 per household last year.
$75 in Overdraft Fees
Banks charged consumers over $10 billion in overdraft fees this year, or about $75 per household. This is compared to a total of $16 billion, with an average of $119 per household, last year. According to a number of reports, in general, overdraft fees are dwindling.
$67 in Identity Fraud
The average household out of pocket costs for identity fraud amounts to $9 billion, or $67 per household a year, as compared to a total of $7 billion, or $54 dollars per household, last 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.
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