A new report from doxo, a mobile bill pay service, found that the average American household spends $22,668 per year on their household bills. The report focused on the 10 most common bills: mortgage, rent, auto loan, utilities, auto insurance, mobile phone, cable and internet, health insurance, life insurance, alarm and security.
The report calculated the total spend across these 10 bills to be $2.91 trillion annually. That’s approximately one-fifty of all U.S. consumer spending.
The average household spends almost $22,668 a year on their household bills. And it’s no surprise that the mortgage and rent are the most costly bills for U.S. households. The report found the average monthly mortgage payment is $1,279, or $15,348 a year. The average rent payment is $1,062, or $12,744 a year.
If you consider the U.S. Census Bureau's median income of $65,712, that means the average household is spending over 23% of their income on a mortgage payment.
The average monthly amount of each bill paid in each category is:
Looking at the spend on household bills on an annual basis, it adds up to $2.91 trillion annually. The breakdown by bill pay category is:
After mortgage and rent, the third largest bill for households is an auto loan. While 40% of households reported paying a mortgage bill, 73% are paying an auto loan. The average monthly auto loan bill rode in at $412. By state, the residents of Wyoming topped the list for having the highest average auto loan bill at $559 a month.
With an auto loan comes auto insurance, which 82% of households reported having this bill. The average monthly auto insurance bill is $186. Again, Wyoming residents top the list paying an average of $335 a month on their auto insurance. At $136 a month, Idaho has the lowest average monthly auto insurance bill.
Doxo’s 2021 U.S. Bill Pay Market Size & Category Breakout Report data is based on actual household payments made in over 37,000 U.S. ZIP codes.
Will interest rates go up in 2022? Mortgage rates have risen since the beginning of 2022, but they are still close to the historical lows.Learn more