Households Pay Nearly 1 000 A Year In Hidden Bill Costs What To Look Out For

In a year of skyrocketing inflation, the last thing consumers want is to pay extra for hidden costs stuck inside their bills. But that’s what’s happening — to the tune of nearly $1,000 a year per household, according to a new report from mobile pay service Doxo.

                By                    Vance Cariaga                

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The report, titled “The Hidden Costs of Bill Pay — 2022,” found that each year, U.S. households spend more than $4.6 trillion on household bills and $3.3 trillion on the 10 most common recurring bills. Hidden bill-pay costs — typically involving identity fraud, late fees, overdraft fees and negative credit impacts — amounted to an additional $128 billion a year for an average of $986 per household. That’s up from $925 per household in the 2021 report.

“Hidden bill-pay costs like identity fraud, detrimental credit impacts, late fees and overdraft fees are a major avoidable expense for many consumers,” Jim Kreyenhagen, Doxo’s VP of Marketing and Consumer Services, said in a press release.

An analysis of consumer survey and statistical data found that the hidden bill costs break down as follows:

Nearly three-quarters (71%) of respondents in the Doxo survey said they are concerned about late fees, while 59% worry about overdraft fees. The vast majority — more than eight in 10 — are concerned about the impact of bills on their credit score (86%), having payment account information stolen (85%), or identify theft when managing online accounts (84%).

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A separate analysis from Doxo released in October found that the typical U.S. household spends just more than $24,000 a year on 10 bill categories.