In the first seven months of the pandemic, more than half of American consumers (57%) have unfortunately seen a reduction in their income, and 42% have missed at least one bill payment as a result.
These and other results from a new survey of US consumers by bill payments company doxo show there are even more concerns when it comes to paying for essential bills as the COVID-19 crisis continues.
Bill payment struggles continue
With unemployment rising since mid-March, and government leaders in DC failing to mount a cohesive plan to manage the pandemic and restore the economy, Americans had to make decisions about which bills to pay and which to skip.
As a result, with auto loans being the most common missed payment at 27%, followed by utilities (26%), cable/internet (25%), rent (20%), mobile phones (19%), mortgage payments (17%), alarm/security (17%), auto insurance (15%), dental insurance (14%), life insurance (13%), and medical insurance (10%).
Even more important to business, retailers, and the economy, 70% of consumers have delayed a major purchase.
Consumers are worried about making future payments
With the November US election fast approaching, consumers are not optimistic about the future. 39% believe they will most likely have to skip paying at least one future bill in the future including cable/internet (29%), utilities (28%), rent (20%), car loans (26%), mobile phones (26%), mortgages (21%), car insurance (21%), alarm/security (19%), life insurance (17%), dental insurance (16%), and medical insurance (15%).
Of even greater concern, 77% believe if they were to lose their job, they would only have enough runway for six months or less; 62% believe they could only pay their bills for three months or less, and 35% believe they could only do so for one month or less.
A further 30% of consumers believe they will have to increase the use of their credit cards in order to pay their bills and 75% expressed concern about their future financial health.
“Our data shows that more than half of all Americans have seen a reduction in income as a result of the COVID-19 crisis. It is, therefore, no surprise that many have also struggled to pay their bills over the last seven months since the pandemic started,” said Jim Kreyenhagen, VP of Marketing and Consumer Services at doxo. “Further, with no end in sight for economic recovery, we’re seeing that consumers remain not only worried about their ongoing ability to pay bills but how the pandemic will impact their future financial health.”
With no COVID-19 vaccine expected until next year and no agreement in Congress about a pandemic rescue plan and financial package, the financial crystal ball is cloudy.
The research results were based on 1,568 sampled households with a 3% margin of error. You can read the more detailed findings from the doxoINSIGHTS COVID-19 Bill Pay Impact Report: October 2020 here.
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