Nearly 50 percent of consumers will need 4 months to one year to catch up on their bills
NAPLES, Fla.--(BUSINESS WIRE)-- Nearly one of three consumers (27%) is past due on at least one bill and nearly 50 percent will need up to a year to catch up on bills due to the COVID-19 pandemic, according to a new study from YouGov and ACI Worldwide (NASDAQ:ACIW), a leading global provider of real-time electronic payment and banking solutions.
The study of nearly 1,400 U.S. adults analyzes the financial impacts brought about by COVID-19 and includes regional and generational bill payments breakdowns and priorities. While nearly half of millennials need to make bill pay arrangements or request deferrals, less than 15 percent (13%) of baby boomers face similar circumstances, while 31 percent of Gen Xers have similarly requested a payment arrangement.
With mounting bills, consumers are tasked with prioritizing those they pay first. Among all respondents, Mortgage and Rent are the overwhelming priorities, at 81 percent and 78 percent, respectively. This is followed by Utilities at 23 percent, a nearly 50 percent dip from Rent. The lowest bill payment priorities include Cable/Internet and Cell Phone, at 3 percent and 5 percent, respectively.
Bill Payment Priorities Overall
Bill Payment Priorities by Generation
When asked about personal financial outlooks, consumers with past due bills have different perspectives.
From an Age Perspective:
From a Regional Perspective:
“With increasing job losses, furloughs and reductions of hours and pay, so many consumers are facing substantial financial difficulties—resulting in both overdue bills and bill deferrals,” said Sanjay Gupta, executive vice president, ACI Worldwide. “Consumers, now more than ever, need financial flexibility. We’re seeing more billers working to accommodate and ease consumer stress and provide payment relief. However, with more than 44 percent of consumers indicating it will take 4 months to a year to get current with their bills, there is much more work to be done here.”
Survey Methodology
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,384 adults. Fieldwork was undertaken between April 29-30, 2020. The figures have been weighted and are representative of all US adults (aged 18+).
*ACI’s rapid response approach to COVID-19 includes new capabilities—Delay My Payment and Manage My Payment—designed to help billers and their consumers with short and long-term payment pause and payment plan arrangements.
About ACI Worldwide
ACI Worldwide, the Universal Payments (UP) company, powers electronic payments for more than 6,000 organizations around the world. More than 1,000 of the largest financial institutions and intermediaries, as well as thousands of global merchants, rely on ACI to execute $14 trillion each day in payments and securities. In addition, myriad organizations utilize our electronic bill presentment and payment services. Through our comprehensive suite of software solutions delivered on customers’ premises or through ACI’s private cloud, we provide real-time, immediate payments capabilities and enable the industry’s most complete omni-channel payments experience. To learn more about ACI, please visit www.aciworldwide.com. You can also find us on Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2020
ACI, ACI Worldwide, the ACI logo, ACI Universal Payments, UP, the UP logo and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.
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PR Dan Ringdan.ring@aciworldwide.com 781-370-3600
Source: ACI Worldwide