New doxoINSIGHTS report shows impact of increasing household financial stress on bill pay behavior
While the financial impacts of the coronavirus pandemic are still developing, bill payment behavior is quickly changing as consumers tighten their spending habits and adapt to the economic uncertainty of the months to come. Unfortunately, new data suggests Americans have reason to worry about their finances, as 69% of households do not have enough in savings to maintain living expenses for more than four months. Findings come from the doxoINSIGHTS COVID-19 Bill Pay Impact Report from leading mobile and web bill pay service doxo, which examines the financial impact of the global pandemic on American households and outlines how consumers are planning to pay their bills. The full report can be downloaded at www.doxo.com/insights.
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“We can see how the COVID-19 crisis has had a direct and immediate impact on bill payments as Americans face the challenge of reduced incomes and manage household cash flow to try to get through the crisis”
COVID-19 Bill Pay Impact Report Findings:
- 69% of households do not have enough in savings to last four months.
- 35% of households are not able to make it more than one month without running into a cash shortage.
- 82% are worried about making ends meet until the economy begins to recover.
- Younger generations are more worried than Baby Boomers and older age groups.
- 59% of households are worried or very worried about their ability to cover upcoming rent or mortgage payments.
- Rent, auto loan, mortgage, and utilities all have at least 58% of consumers worried or very worried about staying current on bills due in coming months.
- 36% of Americans are already paying bills late or will have to in the next month.
- Late payments are occurring twice as frequently as before the crisis.
- More people intend to start paying bills with a credit card.
- 33% of people say they are likely or very likely to start using credit to pay bills, which is double the typical usage of credit for bill payments.
- 40% say they will start paying off their credit with installments or will decrease their usual installment payments if they already carry a month-to-month balance.
“We can see how the COVID-19 crisis has had a direct and immediate impact on bill payments as Americans face the challenge of reduced incomes and manage household cash flow to try to get through the crisis,” said Jim Kreyenhagen, VP of Marketing and Consumer Services at doxo. “Household bills comprise over 50% of total spending, and typically include the most critical financial obligations consumers carry. These doxoINSIGHT reports fit into our overall mission to empower our users with the data, transparency, and payment options they need to stay on top of bills and achieve greater financial health.”
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