The Impact of Autopay on Consumer Credit-Card Management

The use of autopay for bills, including subscriptions and streaming services, has nearly doubled between 2015 and 2020, with over 75% of consumers utilizing it. While autopay can help avoid late fees, federal data shows that total fees and interest paid by cardholders have increased by 19% to around $240 billion during the same period. A study also reveals that consumers who use autopay often underpay their credit card balances compared to those who make manual payments. This rise in autopay comes as a third of consumers struggle to make payments on time, with high-debt consumers having twice as many missed payments on average.