14 Million Americans Face Utility Bills Going to Collections

A new analysis finds that higher home energy costs are pushing millions of Americans toward collections.

Utility debt had reached or was approaching collections for roughly 14 million Americans as of March 2026, an analysis by The Century Foundation and Protect Borrowers found.

The average amount overdue was $817 as monthly home energy bills climbed to an average of $280 — up 12% from December 2024.

Lower Credit Scores Bring Greater Utility Debt Risk

Consumers with deep-subprime credit scores were especially likely to fall behind on their utility bills.

“Financial strain is heavily concentrated among lower credit tiers, with 18% of deep subprime households carrying overdue utility balances,” the report’s authors wrote.

Even that figure may not capture the full extent of the problem. Most household utility accounts do not appear in the consumer credit data the researchers analyzed.

Consumers feeling the financial strain of buying a latte on the way to work every day can brew coffee at home to save money. But they may be far less enthusiastic about cutting their energy use by taking 60-second showers or hanging laundry outside to dry.

Higher home energy costs are affecting consumers nationwide. Three in four U.S. adults said their bills had increased in recent years, according to the Pew Research Center. Pew surveyed 3,524 adults in March, including 1,753 who received questions about home energy costs.

Many consumers may expect their utility providers to introduce incremental price increases over time, but 42% of respondents to the Pew survey said their home energy costs have risen by a lot.

Changes That Could Help Lower Utility Bills

Rising grocery prices may compound the pressure of higher utility bills. U.S. grocery prices increased by 33% from the beginning of 2019 through June 2026 — the largest jump in about 50 years — according to an Associated Press analysis.

Higher prices in the grocery aisle may lead savvy shoppers to hunt for deals or buy less expensive store brands. Those strategies may not be as easy to apply when trying to reduce home energy costs. But consumers still have steps they can take to save money on their utility bills.

Consumers can reduce electricity use by replacing older lightbulbs with energy-efficient models. Energy Star-certified LED bulbs use up to 90% less energy than standard bulbs.

Solar panels require a much larger upfront investment, but they may eventually pay for themselves through incentives and lower energy bills.

People looking to reduce water-heating costs can consider a more energy-efficient water heater. Taking shorter showers or using less hot water during a shower of the same duration can also reduce water and energy use.

Other ways to lower heating and cooling costs include adjusting the thermostat when no one is home or after everyone has gone to bed. Adding insulation can also help lower monthly heating and cooling costs.

These changes may take time to get used to. But they may be worth it if they help consumers avoid going into debt over their utility bills.