The average household in the United States pays $24,000 a year on the 10 most common types of monthly bills, according to a report released last week, which is 6% higher than the amount paid a year ago and represents about 34% of the average household income.
The categories included in the report are: mortgage or rent, auto loans, utilities, auto insurance, health insurance, cable and Internet service, mobile phone, alarm and security, and life insurance. In total, that adds up to $3.1 trillion a year spent on those bills alone, with an additional $1.5 trillion spent on credit card payments, taxes, tolls, and other healthcare expenses.
The most common bill on a consumers’ monthly expense report is one for their mobile phone, with 94% of households paying an average of $113 per month, according to the report. Mortgage and rent were the highest monthly expenses, at $1,368 and $1,129 respectively.
Individuals living in San Jose pay more in monthly bills than any other large city in the country, according to the report. The $3,328 in monthly expenses is 62% higher than the national average. San Jose was followed by New York ($3,059), Boston ($2,963), San Francisco ($2,946), and San Diego ($2,689). Among the 50 largest cities, Detroit ranked last, with monthly expenses of $1,634. But in Detroit, the $1,634 accounted for 66% of the average monthly income of residents living in the city – by far the highest percentage of the 50 largest cities. Minneapolis was the city where the average monthly expenses was the lowest percentage of household income, at 32%, following by San Fransisco and St. Paul, Minn., at 33% each.
