Finance
Energy prices are high and people in these states face the heftiest electricity bills
Check out what’s clicking on FoxBusiness.com.
Paying utilities bills, including ones for electricity, is a responsibility that many Americans face – and some have difficulty covering – each month.
Nationwide, the amount of money that Americans had to pay for electricity in August averaged $185.59, according to a recently-released report from LendingTree. However, it found residents in some states faced heftier monthly bills than others.
The five most-expensive states clocked average monthly electricity bills whose costs ranged from 21.6% to 37.1% above the national average, it reported.
ALMOST 4 IN 10 AMERICANS WORRY ABOUT PAYING BILLS IN NUMBERS SURPASSING GREAT RECESSION ERA
LendingTree said its findings for monthly electricity bill costs were based on data from the Energy Information Administration (EIA).
Residents in the following five states were on the hook for the largest average electricity bills in August, according to LendingTree’s analysis:
Connecticut: $254.47
Fall foliage along the Connecticut River in Hartford. Hartford is the capital of the U.S. state of Connecticut. Hartford is known for its attractive architectural styles and being the Insurance capital of the United States (iStock / iStock)
Arizona: $252.60
In an aerial view, the downtown skyline is seen during a heat wave on July 15, 2023 in Phoenix, Arizona. Weather forecasts today are expecting temperatures to reach 115 degrees. The Phoenix area is grappling with record-breaking temperatures as prolo (Brandon Bell/Getty Images / Getty Images)
Texas: $233.38
In an aerial view, the downtown skyline is seen on April 11, 2023 in Austin, Texas. The city of Austin has been ranked as the top destination of U.S. job markets for the second consecutive year, according to data collected by The Wall Street Journal. ((Photo by Brandon Bell/Getty Images) / Getty Images)
Hawaii: $230.80
The entire coastline of Honolulu, Hawaii including the base of Diamond Head crater and state park, past the hotel lined Waikiki Beach towards downtown in the distance including the suburban neighborhoods dotting the hills surrounding the city center. (iStock / iStock)
Alabama: $225.65
Huntsville, Alabama, USA park and downtown cityscape at twilight. (iStock / iStock)
LendingTree found “usage matters,” reporting some states “may have high rates” for each kilowatt-hour used “but low average monthly bills (and vice versa).”
Utility bills a major pain point for some Americans
LendingTree’s findings about electricity bill costs comes as it reported 23.4% of Americans experienced an inability to cover their entire energy bill or portions of it in the last year, based on Census Bureau Household Pulse Survey data.
The share who felt that creeped up 1.4 percentage points year-over-year, it said.
“Even though inflation has moderated in recent months, life is still crazy-expensive, and that can make it hard to pay your bills,” LendingTree chief credit analyst Matt Schulz said in the report. “Lots of people have found themselves needing to make difficult decisions to keep the lights on.”
MAJORITY OF AMERICANS LACK ECONOMIC SECURITY, STUDY FINDS
Overall inflation measured by the Consumer Price Index increased 0.3% month-over-month and 2.7% year-over-year in November, according to the Bureau of Labor Statistics.
Buying online Online shopping A Bankrate.com survey reveals that 40% of Americans that are married or living with a partner have committed financial infidelity. iStock iStock (iStock / iStock)
For electricity, prices posted a 0.4% drop month-over-month but remain up 3.1% from 12 months ago. Meanwhile, utility gas service prices rose 1% from October and 1.8% from November 2023, the CPI data showed.
Needing to cover utility bills prompted 34.3% of Americans to curb their spending on necessary things – or eliminate some altogether – in at least one instance in the prior year, LendingTree said.
NEARLY 60% OF AMERICANS SAY $100K INCOME REQUIRED TO CURB EXPENSES ANXIETY: STUDY
In September, the Bureau of Labor Statistics reported American households saw an average of $77,280 in household expenditures in 2023. That equated to about $6,440 per month.
‘The Big Money Show’ co-hosts discuss buy now, pay later spending options and the impact it will now have on your credit score.
Small, everyday purchases like a meal from DoorDash are now able to be financed through eat now, pay later options — a practice that some experts deem “predatory.”
“You’ve got to have enough sense to not follow the urge to finance a taco, okay? You have got to be an adult,” career coach Ken Coleman told “The Big Money Show,” Wednesday.
“This is predatory, and it’s going to get a lot of people in deep trouble.”
RISKS OF BUY NOW, PAY LATER: ‘TICKET TO OVERSPENDING,’ EXPERT SAYS
DoorDash and Klarna are now partnering up to extend buy now, pay later options to consumers. (Reuters, Getty / Getty Images)
Financial wellness experts are continuously sounding the alarm to cash-strapped consumers, warning them of the devastating impact this financial strategy could have on their credit score as some lenders will begin reporting those loans to credit agencies.
Consumers may risk getting hit with late fees and interest rates, similar to credit cards.
“So your sandwich might show up on your FICO score, especially if you pay for it late,” FOX Business’ Jackie DeAngelis explained.
EXPERTS WARN HIDDEN RISKS OF BUY NOW, PAY LATER
Major players like Affirm, Afterpay, and Klarna have risen to prominence at a time when Americans continue to grapple with persisting inflation, high interest rates and student loan payments, which resumed in October 2023 after a pause due to the COVID-19 pandemic.
Ramsey Solutions personal finance expert and ‘The Ramsey Show’ co-host George Kamel discusses the ‘buy now, pay later’ craze and the trend that celebrates the financial benefits of being childless.
“The Big Money Show” co-host Taylor Riggs offered a different perspective, suggesting that company CEOs have a “duty” to attract as many customers as they want.
“Unfortunately for me, this always comes down to financial literacy — which I know is so much in your heart about training people to save now by later,” she told Coleman, who regularly offers financial advice to callers on “The Ramsey Show.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Coleman continued to come to the defense of financially “desperate” consumers, arguing that companies are targeting “immature” customers.
“I’m for American businesses being able to do whatever they want to do under the law. That’s fine. But let’s still call it what it is: it’s predatory, and they know who their customers are,” Coleman concluded, “And I’m telling you, they’re talking about weak-minded, immature, desperate people.”
FOX Business’ Daniella Genovese contributed to this report.
U.S. tariff rates under Trump will be higher than the Smoot-Hawley levels from Great Depression era
Accountants tackle tariff increases after ‘Liberation Day’
How to use opportunity zone tax credits in the ‘Heartland’
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
The Essential Practice of Bank and Credit Card Statement Reconciliation
Are American progressives making themselves sad?
-
Economics1 week agoYoung Americans are losing confidence in economy, and it shows online
-
Personal Finance1 week agoStudent loans could be managed by the Small Business Administration
-
Economics6 days agoPCE inflation February 2025:
-
Accounting6 days agoIRS sets new initiative with banks to uncover fraud
-
Economics1 week agoWhite House denials over the Signal snafu ring hollow
-
Economics6 days agoConsumer sentiment worsens as inflation fears grow, University of Michigan survey shows
-
Economics1 week agoTexas troopers are in more and more lethal car chases
-
Personal Finance1 week agoSocial Security delays date for new ID policies following complaints