5 Ways to Cut Household Bills

Life is getting more difficult for U.S. households on the affordability front, with the average consumer spending $39,468, or 47 percent of all annual income, on bill payments alone, according to a new doxo study.

“For many people, the affordability problem is very real and a real worry,” Linda Jensen, a financial planning expert and the founder and CEO of Heart Financial Group, told NTD News. “Incomes have not kept up with the cost of housing, insurance, groceries, utilities, and debt payments, and when those expenses rise faster than paychecks, there’s less flexibility in the budget and more stress.”

5 Ways to Lower Household Debt

Americans struggling with their finances may understandably view those payment obligations as a big hill to climb, but there are ways to cut debt down to size. Here’s what personal finance experts recommend.

1. Make Small Changes that Add Up

Some moves may not seem like much on their own, but they can add up over the long haul.

“For utilities, for example, adjust thermostats a few degrees, seal drafts, and review usage plans because these small changes add up,” Jansen said. “On internet and phones, call your provider and ask for current promotions, and if there aren't any, shop around.”

2. Get Rid of Low-Value Budget Costs

To meaningfully cut a typical household budget, start by tracking every expense for a month. “In doing so, identify your three biggest non‑essential categories, such as canceling or downgrading unused subscriptions, negotiating lower phone and internet rates, and focusing on paying down high‑interest debt,” Adina Dragos, a finance analyst at Rent Café, told NTD.

3. Make Sure Your Budget Eliminates Mistakes

Just as important as cutting costs, however, is avoiding common budget mistakes that can derail the best laid budget plan. “Avoid underestimating 'small' recurring costs, guessing instead of relying on actual numbers, and failing to update the budget when income or prices change,” Dragos advised.

4. Be Smart About Phone and Internet Features

Most customers with unlimited data plans (64 percent) use WiFi exclusively for their daily activities, as do 68 percent of customers with limited data plans. “Despite this, 84 percent of cell phone users have an unlimited plan by default and could easily cut costs by taking a look at cheaper limited data plan options that better fit their needs,” Ammy Archer, a research lead at the search comparison site WhistleOut, told NTD.

5. A Good Budget Calculator (or Two) Can Help Slash Costs

Handy and highly available tools like a rent affordability calculator can help people determine a realistic rent range, so they can find rental options without breaking the bank.

“Meanwhile, a cost‑of‑living calculator complements this by comparing everyday expenses, such as housing, groceries, transport, and utilities across different cities or neighborhoods, helping you see how far your income actually goes in various places,” Dragos said.

Don’t Make These Household Budget Mistakes

The biggest mistake Jensen sees is not tracking spending, because you cannot fix what you don’t measure.