InvoiceCloud Study: Spending Under Scrutiny as Americans Struggle to Manage Essential Expenses

August 28, 2025 at 09:00 AM EDT

Leading provider of digital payment solutions finds more than half of Americans surveyed struggle to pay essential bills; nearly one-third of Americans surveyed live paycheck to paycheck

InvoiceCloud, a leading provider of online billing and digital payment solutions, today announced the findings of its consumer spend research, revealing that amid ongoing global economic uncertainty, more than half (56%) of Americans surveyed struggle to pay essential monthly bills on time and nearly one-third (28%) live paycheck to paycheck.

The increased cost of living, slowing job market, and global trade challenges have put pressure on consumer wallets. Many are faced with choosing between what they consider to be essential monthly bills like groceries (89%), utilities (83%), cell or phone expenses (72%), and transportation (63%)—and what they can cut back on if needed—such as dining out and take-out (54%), clothing and accessories (41%), and travel and leisure (38%). While 72% of consumers surveyed say they have leftover funds after paying their essential bills, most only have $100–$500 and 20% have less than $100.

“Americans are under growing financial pressure, making it harder to pay essential bills on time,” said Kevin O’Brien, CEO of InvoiceCloud. “That’s why it’s critical for governments, utilities, and other service providers to support vulnerable constituents with digital payment tools that help keep vital services running.”

Additional key findings from the survey include:

What Makes the Cut: For consumers surveyed with leftover funds to spend after paying the essential bills, dining out/take-out (29%), travel and leisure (18%), and recreational activities or hobbies (16%) top the list. This is followed by 15% of consumers surveyed who would opt not to spend their leftover funds.
Seasonal Impacts: Nearly one in five consumers surveyed (19%), particularly in the Northeast and Midwest, say the winter season makes it harder to pay bills on time. InvoiceCloud platform data from the last two complete years (2023 and 2024) reinforces this trend: with gas bills nearly doubling in winter, gas billers in these regions saw up to a 46% increase in late payments. Together, these insights reflect how seasonal costs put additional strain on household budgets and highlight the importance of flexible, digital payment options to help consumers stay current.
Digital Divide: Only 41% of consumers surveyed use online tools or mobile apps to manage their finances and stay on track—the majority of these consumers are Millennials and Gen Z. Millennials (56%) and Gen Z (48%) are also more likely to use AutoPay and online portals, highlighting a gap in payments technology adoption among Baby Boomers (35%) and Gen X (37%), who prefer paying bills manually.

As the federal government’s Executive Paperless Check Order deadline approaches, closing the digital payments gap will become essential to all. Organizations have an opportunity to accelerate digital payment adoption through modern technology and improve the engagement and collaboration between bill payers and essential service providers to manage expenses more efficiently and provide a better experience.

To learn more about InvoiceCloud and its mission to make digital payments accessible for all, visit invoicecloud.com.

About the Survey

The consumer spend survey was conducted via Dynata and polled 1,000 general U.S.-based consumers over 18 years of age in July 2025. Respondents were segmented and analyzed across age groups, gender, marital status, having children, and household income. For complete survey methodology, please email invoicecloud@pancomm.com.

About InvoiceCloud

InvoiceCloud provides modern digital payment, customer engagement, and outbound disbursement solutions. The company serves more than 3,200 customers across the utility, government and insurance industries and is a leader in the electronic bill presentment and payment (EBPP) space. InvoiceCloud’s SaaS platform enables continuous enhancements to the customer experience, resulting in higher digital payment, AutoPay, and paperless adoption rates. By switching to InvoiceCloud, clients can improve customer engagement and satisfaction while lowering costs, accelerating payments, and reducing staff workloads. To learn more, visit InvoiceCloud.com.