Pay Bills

Here’s how much Midland residents spend on monthly bills

Recently, doxo, a bill payment service, released its 2022 US Bill Payments Market Size and Category Breakdown Reportwhich revealed that Americans spend $3.12 trillion a year on the 10 most common household bill categories.

That figure represents nearly 25% of all consumer spending in the United States, Doxo said. Statistical analysis of actual household payments was used to assess the report’s market on over 97% of US zip codes.

According to United States Census Bureau, the actual median U.S. household income is $67,521, and the report found that the average U.S. household spends $24,032 a year on household bills. This suggests that more than a third of Americans’ annual salary is spent on basic expenses, Doxo said.

While housing continues to be the single largest expense for American households by far, the report finds that the average household pays more out of pocket per month for car loans, car insurance and even cell phone bills than essential costs like health or life insurance, which are often covered by employers or automatically deducted from paychecks.

Per month, the average US household spends $1,368 on mortgages (40% of households pay this bill) or $1,129 on rent (35%), $433 on car loans (73%), $328 on utilities ( 78%), $196 in car insurance (82%), $123 in health insurance (76%), $114 in cable and Internet (82%) and $113 in mobile phone bill (94%). Alarm and security bills represent $84 (15%) and life insurance $82 (27%).

According to the report, the average Michigan household spends $1,124 per month on mortgages, #34 in the US or $885 on rent (#29), with other monthly expenses including $410 on auto loans ( No. 36), $310 in utilities (No. 26), $185 in car insurance (No. 30), $114 in cable and Internet (No. 24), $122 in health insurance ( No. 18), $100 on mobile phone bills (No. 46), $82 on life insurance (No. 25) and $100 on alarm and security bills (No. 4).

The average Midland household spends $1,676 per month on the 10 most common bills, 16.3% less than the national average and ranks 104th out of 167 markets tracked in Michigan. That number represents 32% of household income, Doxo said. The highest average bill is for mortgages, $1,140 per month, with 43% of Midland paying that monthly bill.

According to the report, the bill most Midland residents pay is for cell phone service, with 95% of residents paying this bill with an average monthly cost of $82, $31 less than the national average. Another 87% of Midland residents pay a monthly cable and satellite bill, averaging $135, $21 more than the national average ($114).

The report says most Midland residents pay their bills by debit card.

By incorporating tens of millions of payments, Doxo said, the 2022 U.S. bill payment market size and category breakdown report is a direct representation of what Americans actually pay on bills. The company’s customer base includes more than 6 million households and represents all US income and regional demographics, Doxo said.

Doxo uses unique household bill payment data to quantify the customer’s actual share of bill spending.