Nearly 1 in 6 of Americans Aren't Paying Their Bills on Time
KEY POINTS
- Bill payment challenges: Seventeen percent of Americans can't pay all their bills on time, with rates higher among low-income, younger, and non-white individuals.
- Renters vs. homeowners: Renters are significantly more likely to miss utility and communication bills than homeowners.
- Financial strain persists: Nearly 30% of adults feel financially worse off than a year ago, highlighting ongoing economic stress post-pandemic.
Seventeen percent of Americans aren't able to pay all their bills on time, according to new data from the Federal Reserve. For low-income households, that jumps to 1 in 3. Younger and non-white Americans are also struggling to pay their bills when they're due.
Falling behind on bills can not only incur late fees, but harm your credit score, making it more difficult to apply for credit cards or a mortgage. Financial tools like budgeting apps and credit monitoring tools -- which many of the best credit cards provide as a perk -- can help manage recurring expenses and avoid missed payments.
Missed bills by income, age, education, race, and housing status
Roughly 1 in 6 U.S. adults didn't pay all their bills in the previous month when surveyed by the Federal Reserve in October 2024 -- but the struggle isn't spread evenly.
- Income divide: 34% of adults earning under $25,000 were behind on their bills compared to just 7% of those earning $100,000 or more.
- Parents struggle: 22% of parents with kids at home missed a bill compared to 15% of non-parents.
- Age matters: Nearly 1 in 4 (24%) of adults under 30 didn't pay all of their bills compared to just 9% of those 60+.
- Racial disparities: 11% of white adults and 13% of Asian adults fell behind on their bills compared to 32% of Black and 26% of Hispanic adults.
- Disability gap: 25% of adults with a disability hadn't paid all their bills compared to 15% of those without a disability.
Those findings add to other well-documented financial inequality, including in stock ownership, savings, income, and more.
What bills are being missed? Utilities, phone, internet and more
Utilities, phone, internet, and cable are the most commonly missed bills, and renters are three or four times more likely to have fallen behind on them than homeowners.
Five percent of all adults were behind on their utilities bill, which includes water, gas, and electricity. But that jumps to 11% for renters and drops to 3% for homeowners. Similarly, 5% of all adults missed their phone, internet, or cable bill, however 9% of renters did compared to just 2% of homeowners.
That gap persists for missed rent and mortgage payments. Six percent of renters missed their rent bill compared to 2% of homeowners who fell behind on their mortgage.
Overall, 25% of renters were behind on at least one type of bill compared to 11% of homeowners, according to the Federal Reserve.
Why are Americans falling behind on their bills?
Even as inflation cools, 29% of adults say they're worse off financially than a year ago. That's more than double the rate from 2018. Although that percentage has come down in recent years, financial strain post-COVID clearly still lingers. Before the pandemic, fewer than 1 in 5 Americans felt worse off.
The same disparities in those who have fallen behind on their bills also exist in feeling financially worse off, especially among minority adults. Struggling to pay bills is one reflection of that sustained sense of financial stress.
Still, growing awareness of financial challenges can drive more people to seek tools, support, and habits to take back control of their money.
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Sources
- Federal Reserve (2025). "Economic Well-Being of U.S. Households in 2024."
Our Research Expert
Jack Caporal is the Research Director for The Motley Fool and Motley Fool Money.
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