U.S. Households Face Rising Utility Debts Amid Surging Energy Costs

A recent analysis by The Century Foundation and Protect Borrowers reveals a significant rise in overdue utility bills among U.S. consumers. Between April and June 2025, past-due balances increased by 9.7% compared to the same period in 2024, with average overdue amounts reaching $789. This surge coincides with a 12% increase in monthly energy costs during the same timeframe. Approximately 6 million households are now at risk of being referred to collections due to severe utility debt.

The report highlights that consumers typically prioritize utility payments alongside mortgages and auto loans. The uptick in both energy costs and delinquencies suggests that many are struggling to keep up with essential expenses. Julie Margetta Morgan, president of The Century Foundation, noted, "There's a lot of information out there about rising utility costs, but here we can actually look at what that impact has been on families in terms of how they're falling behind."

The financial strain is particularly pronounced among renters and lower-income households. Data indicates that 11% of renters reported being behind on their utility bills, compared to 3% of homeowners. Additionally, 5% of all adults missed their utility payments, with the figure rising to 11% among renters.

The rising utility delinquencies present political challenges for President Trump, who faces criticism over affordability issues amid economic pressures and his promotion of AI development—a sector that significantly increases electricity demand. The administration attributes rising utility costs to state-regulated markets, particularly targeting Democratic states using renewable energy. Critics argue that federal policies impeding renewable energy expansion contribute to higher costs.

Broader economic indicators provide a mixed picture. According to Equifax's Market Pulse Second Quarter U.S. Consumer Credit Trends, total consumer debt reached $17.86 trillion in June 2025, up 2% over a year ago. Delinquency on total U.S. consumer debt was 1.5% in June, steady from May and April. However, the national mortgage delinquency rate rose by 15 basis points from May to 3.35% in June 2025, driven by early-stage delinquencies.

The increase in utility bill delinquencies underscores the financial challenges faced by many U.S. households. This development has significant social, economic, and political implications, warranting further investigation and discussion.