U.S. households spend about $3 trillion annually on recurring bills such as those for housing costs, utilities and phone service, according to Doxo’s research. But those bills may have hidden costs in the form of late fees, overdraft fees, fraud expenses and the overall cost of bad credit. These often overlooked costs add up to an additional $74 billion per year, Doxo’s analysis finds. The average household spends $577 a year on these extra costs.
Breaking Down the Hidden Costs of Bill Pay
PAYMENT FRAUD AND IDENTITY THEFT COSTS- $27
OVERDRAFT FEES- $117
LATE FEES- $132
ADDED COSTS OF LOWER CREDIT- $301