Americans Are Falling Behind on Utility Bill Payments — How To Save Hundreds Right Now
Written by
Karen Doyle
Edited by
Zuri Anderson
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Heating, cooling and other utility costs are increasing at a faster rate than overall inflation.
The Century Foundation and Protect Borrowers analyzed consumer credit data and found that rising utility bills are pushing more households into more debt.
Here’s what you need to know about the rise in utility costs, and how you can stay ahead of it.
Utility Costs Are Rising, and So Are Delinquencies
Anyone who pays a utility bill knows that costs are going up.
Average monthly energy bills, adjusted for seasonality, rose from $196 in March 2022 to $265 in June 2025. This is an increase of 35%, more than three times the rate of overall inflation during that same time period. And nearly a quarter of that increase came in the past two quarters, indicating that the upward trajectory of utility prices is accelerating, not moderating.
According to the analysis by The Century Foundation and Protect Borrowers, the average overdue balance on a utility bill is $789, a 32% increase from the average of $597 in 2022. These balances, particularly for households that are already vulnerable, can increase rapidly due to penalties and interest.
Nearly 5% of households, representing about 14 million Americans, have debt that is so far past due that it has been or will soon be sent to collections. Households in parts of the South and Appalachia have delinquency rates nearly twice as high as the average.
Utility Prices are Rising Nationwide
Utility costs, including prices for home electricity, gas and other fuels, are going up nationwide. In some states, the average monthly energy bill increased 15% or more in just the first half of 2025.
States in the Northeast average $300 or more for utility costs, making that the priciest region, due to the high cost of heating. Average overdue utility balances are over $1,500 for households along the Atlantic coast and in parts of the Midwest.
Other states like California, with an average cost of $300 per month, Arizona, at $289 per month, and Texas, at $269 per month, see their increases coming from cooling demands.
How To Manage Higher Utility Bills
Utility bills aren’t a luxury — they’re a necessity. But there are ways to make sure you’re not paying more than you have to. Here are some of them:
- Turn off the lights when you leave the room. Dad was right about this one — don’t leave lights on that you’re not using.
- Lower or raise your thermostat, depending on the season. Keeping your home a few degrees cooler in winter or warmer in summer can make a big difference in your monthly costs. Using a programmable thermostat can help by moderating the temperature during the day when no one is home.
- Maintain your equipment properly. Make sure filters are changed according to the manufacturer’s recommended schedule. Keep your refrigerator coils clean. Make sure your dryer vent is clear.
- Your local utility provider may offer a home energy audit, which will identify ways you may be able to reduce your costs.
What To Do If You Get Behind on Your Utility Bills
If you can’t pay your full utility bill, don’t ignore it. Call your utility provider and explain your situation. They will often try to work with you.
Utility companies usually offer budget payment plans. These plans let you pay the same amount each month, so you’re not surprised by seasonal spikes in your bill. Knowing what your bill will be can help you be prepared to pay it when it comes.
There are non-profit and government agencies that can help with utility costs. The Low Income Home Energy Assistance Program, or LIHEAP, is a federal program that provides grants to low-income households to help not only with utility payments but also with making improvements to your home to reduce your costs.
The last thing you want is for your utilities to be disconnected, so stay in touch with your provider and seek out any available assistance.
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