Nearly 1 in 7 Americans Aren't Paying Their Bills on Time

Fifteen percent of Americans aren't able to pay all their bills on time, according to the Federal Reserve. For low-income households, that jumps to more than 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 7 U.S. adults didn't pay all their bills in the previous month when surveyed by the Federal Reserve in October 2025, but the struggle isn't spread evenly.

• Income divide: 38% of adults earning under $25,000 were behind on their bills compared to 8% of those earning $100,000 or more.
• Parents struggle: 21% of parents with kids at home missed a bill compared to 13% of non-parents.
• Age matters: Nearly 1 in 4 (23%) of adults under 30 didn't pay all their bills compared to 8% of those 60 and older.
• Racial disparities: 10% of white adults and 10% of Asian adults fell behind on their bills compared to 30% of Black adults and 24% of Hispanic adults.
  
  

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?

Twenty-eight percent of adults say they're worse off financially than a year ago. 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.