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Study ranks Tennessee as one of the least expensive states to pay bills

Study ranks Tennessee as one of the least expensive states to pay bills

Study ranks Tennessee as one of the least expensive states to pay bills

A new report reveals how much it costs to live in Tennessee in terms of common household bills. And it’s pretty cheap compared to other parts of the country.

Doxo’s 2024 Bill Cost Index report is based on the company’s nationwide bill payment statistics for the ten most common household bill categories, including mortgages, utilities, auto loans, and more. Doxo is a third-party online bill payment network that aims to make the bill payment experience easier and faster.

The report, released June 12, includes state- and city-specific breakdowns with comparisons to the national average and determines which areas are the cheapest and most expensive places to live in the United States, based on the Cost of Bills Index.

Below are the report’s findings and how Tennessee ranks compared to other U.S. states.

U.S. households are spending more on mortgage payments, rent payments and car loans.

According to the report, the total size of the US household bills market amounts to $4.46 trillion annually. American households spend $3.35 trillion annually on the 10 essential household bills which include: mortgage, rent, auto loans, utilities (electricity, gas, water and sewer, and waste and recycling), auto insurance, cable and internet, health insurance, cell phone, alarm and security, and life insurance.

Of these 10, American households spend the most on mortgages ($885 billion), rent payments ($656 billion) and auto loans ($571 billion).

The average American household spends $25,513 a year on the top 10 essential household bills. The top three expenses reflect spending nationwide, while the bottom three include life insurance, alarms and security, and cell phone payments.

According to the report, Tennesseans spend 9% less than the national average on household bills, placing the Volunteer State as the 35th most or least expensive state to live in the U.S., according to the Cost of Bills index. As for cities, Memphis ranks as one of the most affordable of large U.S. cities, spending 10% less than the national average.

What are the most expensive states to live in?

Here are the top 5, according to the 2024 Bill Cost Index.

  1. Hawaii (45% more expensive than the national average)
  2. California (42% more expensive than the national average)
  3. Massachusetts (33% more expensive than the national average)
  4. New Jersey (32% more expensive than the national average)
  5. Maryland (26% more expensive than the national average)

Which are the cheapest states to live in?

These are the least expensive states, according to the 2024 Cost of Bills Index.

  1. Oklahoma (16% less expensive than the national average)
  2. Kentucky (16% less expensive than the national average)
  3. Arkansas (17% less expensive than the national average)
  4. Mississippi (19% less expensive than the national average)
  5. West Virginia (25% less expensive than the national average)

Methodology

The Bill Cost Index is designed to illustrate how much it costs to live in one area compared to another, with a focus on household bills. The number 100 was used to represent the national average and states were then assigned a number, either above or below 100, based on how they compare to the national average.

For example, the cost to bill index for Alabama is 86, which is 14% less than the national average, while the cost to bill index for California is 42, which is 42% above the national average.

Diana Leyva covers current affairs and service journalism for The Tennessean. Contact her at [email protected] or follow her on X, the platform formerly known as Twitter, at @_leyvadiana