This summer has brought record-breaking heat, and a recent survey conducted by CNET Money shows that the majority of Americans are feeling the financial strain of higher energy bills. The survey found that 78% of US adults are worried about their home energy costs this summer, with 32% resorting to financing options like credit cards, loans, or payment plans to make ends meet. It’s no surprise that people are concerned about rising inflation and utility bills, with 41% of respondents citing high utility bills as a major financial burden.
Energy costs are on the rise, with a 4.7% increase since May 2023 according to the latest Consumer Price Index report. Daniella Flores, a personal finance expert and CNET Money Expert Review Board member, notes that many people fear their energy bills will continue to climb. As energy company costs rise, consumers end up bearing the brunt of the increase.
Despite some minor decreases in average energy costs in recent months, concerns about the economy and rising energy use persist. It may feel like expensive energy bills are inevitable, but there are steps you can take to mitigate the impact on your budget. CNET’s survey uncovered a variety of strategies that Americans are using to cope with high energy costs, including cutting back on spending, borrowing, and enrolling in payment assistance programs.
The survey also revealed that concerns about energy costs are widespread across the country, impacting households in every region. Even states with the highest electricity bills are not immune to rising energy costs, with average monthly bills ranging from $160 to $202 in the top 10 states. While some consumers are able to weather the financial strain with energy-efficient upgrades, others are struggling to keep up with their bills.
To help alleviate the burden of high energy costs, experts recommend exploring options such as utility-approved payment plans, federal assistance programs like LIHEAP, and budget billing arrangements offered by utility companies. Making energy-efficient upgrades to your home, such as installing smart devices and adjusting your thermostat settings, can also help lower your energy bills in the long run.
While the cost of energy may continue to rise, taking proactive steps to improve energy efficiency and manage your energy usage can help you save money and reduce financial stress in the face of escalating energy bills.