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U.S. Households Pay $1,268 a Year in Hidden Costs Associated With Paying Bills, up 29% Year over Year
[December 07, 2023]

U.S. Households Pay $1,268 a Year in Hidden Costs Associated With Paying Bills, up 29% Year over Year

A new report released today by doxo found that hidden costs associated with paying bills amount to an additional $167 billion annually, averaging $1,268 per household. Each year U.S. households spend over $3.87 trillion on household bills, and $3.22 trillion on the 10 most common recurring ones. Staying on top of these bills is the single largest determinant for consumer financial health. doxo's Hidden Costs of Bill Pay Report - 2023 uncovers the concerns American consumers have about identity fraud, late fees, overdraft fees, and detrimental credit impacts and quantifies the expense each causes for the typical U.S. household.

The figures in this year's report 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.

Breaking Down the $1,268 Consumers Pay in Hidden Costs Associated with Paying Household Bills:

Analysis of consumer survey and statistical data shows the average U.S. household incurs $1,268 per year in additional hidden costs associated with bill payment, comprised of:

  • $67 in Identity Fraud Costs: 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.
  • $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.
  • $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.
  • $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.

"In today's uncertain economic climate, it's never been more critical for American consumers to be aware of the hidden fees associated with their household bills. This includes costs like identity fraud, late fees, overdraft fees and detrimental credit impacts," said Liz Powell, Senior Director of INSIGHTS at doxo. "The reality is that while many Americans are paying the price, these hidden costs are easily avoidable expenses. Using a service like doxo can help people avoid incurring a per-household cost of $1,268 a year on average, empowering consumers to achieve their financial goals while spending less time and effort managing their bills."

High Consumer Concern about Stolen Payment Information and Credit Impacts

Consumers are increasingly concerned about the variety of ways they get stuck with expenses when managing and paying their bills. doxo's survey of active household bill payers shows:

  • 86% are concerned about having payment account information stolen
  • 85% are concerned about bill pay impacts on their credit score
  • 84% worry about identity fraud when managing online accounts
  • 69% worry about incurring late fees and penalties
  • 58% are anxious about overdrafts to their bank account when paying bills

doxoPLUS Tackles the Hidden Costs of Bill Pay

doxo's secure, all-in-one bill pay service facilitates secure payment to any biller, with any payment method, on any device - delivering payments from millions of paying users to tens of thousands of billers across the country. doxo users can upgrade to doxoPLUS and receive five key Bill Pay Protections that directly address the hidden costs of bill pay: Private Pay™ Protection, Identity Theft Protection, Overdraft Protection, Credit Score Protection, and Late Fee Protection. Collectively, these protections reduce the hassle and anxieties of paying bills and improve household financial health.

Read the full Hidden Costs of Bill Pay Report 2023 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 8 million paying consumers across over 97% of U.S. zip codes. doxo's payment network covers over 120,000 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 delivers innovation that transforms the bill pay experience for consumers, billers and financial technology providers. For over 8M consumers, doxo's all-in-one bill pay makes it simple to organize and pay any bill on any device through a secure checkout. For billers, doxo's network-driven platform enables online and mobile payments with a ridiculously simple integration, radically lower costs, and game-changing features that are unavailable with legacy bill pay vendors. For fintech partners, doxo delivers financial innovations to consumers across 97% of US Zip Codes, paying from more than 5,000 financial institutions to over 120,000 billers in 45+ service categories. For employees, doxo is a creative, ever-learning team that is passionate about building fintech tools that dramatically improve the bill pay experience. For investors, doxo provides an extraordinary opportunity to invest alongside Jackson Square Ventures, MDV, and Bezos Expeditions to disrupt a market that accounts for over $4T of US Household spend. To learn more about America's leading bill pay network, visit

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