Americans are struggling to pay bills on time, especially those making under $75,000 a year. A new survey from Clever Real Estate shows that 61% of Americans in this income bracket fell behind on bills last year. This problem is getting worse as everyday costs keep going up.
The survey looked at 1,000 Americans and found some worrying trends. Almost half of all people surveyed missed bill payments in 2023. But the numbers get really serious when you look at people making less than $75,000 – more than 6 in 10 of them couldn’t pay all their bills on time.
Living paycheck to paycheck has become normal for many Americans. About 78% of workers say they use most or all of their income just covering basic needs. When money is this tight, any surprise expense can throw everything off balance.
Credit card bills top the list of payments people skip. About 40% of those who fell behind missed credit card payments. Other common overdue bills include utilities (37%), medical bills (28%), and phone bills (26%). These numbers show how many people are forced to make tough choices about which bills to pay first.
“The financial pressure on middle and working-class Americans has intensified dramatically,” says financial advisor Marcus Johnson. “When basic necessities consume most of your income, there’s simply no buffer for unexpected costs.”
The consequences of missing payments can start a downward spiral. Late fees add to the original bill amount. Credit scores drop, making future loans more expensive. Some people face service disconnections or collections actions. Each of these outcomes makes financial recovery even harder.
Medical bills cause special hardship for many Americans. Even with insurance, high deductibles and copays can create thousands in debt. A report from the Consumer Financial Protection Bureau found medical collections appear on 43 million credit reports, affecting one in five Americans.
Housing costs remain the biggest monthly expense for most households. In many cities, rent has jumped much faster than wages. The typical recommendation is that housing should take up no more than 30% of income, but many Americans now spend half their paychecks just keeping a roof over their heads.
Inflation has cooled since its peak but prices haven’t come back down. Groceries cost 25% more than they did in 2019. Gas, utilities, and insurance have all seen similar increases. Meanwhile, wages haven’t kept up for many workers, creating an impossible math problem for household budgets.
Some Americans are finding creative ways to manage. Bill prioritization has become a necessary skill – paying the most critical expenses first. Others negotiate payment plans with creditors or use balance transfer offers to manage debt. Community assistance programs have seen application increases as more families seek help.
Financial experts suggest several strategies for those falling behind. “Contact creditors before missing payments,” advises consumer advocate Melissa Chen. “Many companies offer hardship programs that can temporarily reduce payments.” Debt consolidation, budgeting apps, and credit counseling services can also provide tools for financial recovery.
The government has tried to help through stimulus payments, expanded tax credits, and temporary protection measures, but most of these programs have ended. Some states have implemented their own relief initiatives, though support varies widely depending on location.
The problem goes beyond individual budgeting choices. Systemic issues like wage stagnation, healthcare costs, and housing affordability create financial traps that are difficult to escape. Until these larger economic challenges are addressed, millions of Americans will continue to face difficult choices about which bills they can afford to pay.
While higher-income Americans certainly face financial challenges too, the survey confirms what many already knew – the financial system works very differently depending on how much you earn. For those making under $75,000, falling behind isn’t the exception – it’s increasingly becoming the rule.
