As utility costs climb, many Americans are making tough financial choices just to keep the lights on. The trend is especially concentrated in the South and rural states, where lower average incomes and harsh weather can make energy bills harder to manage.
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According to a LendingTree study based on recent Census Bureau data, more than one-third of Americans (34.3%) said they’ve skipped or reduced basic household necessities like groceries, medication or rent in the past year to afford their utility bills.
Five states stand out with the highest percentage of residents cutting back on essential expenses to cover utility costs.
Mississippi
In Mississippi, 44.5% of residents reported cutting back on basic necessities to pay their utility bills — the highest rate in the country. One in three residents (33.4%) said they’ve been unable to pay part or all of their energy bill at least once in the past year.
Mississippi also ranked among the top states where people risk unsafe or unhealthy temperatures in their homes. With above-average electricity costs and some of the lowest median incomes in the U.S., many households in the state face constant financial pressure to stay powered.
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Alabama
Alabama ranked just behind Mississippi, with 44.3% of residents saying they’ve reduced or skipped necessary expenses to cover energy bills. Furthermore, 29.4% have been unable to pay their bill at least once in 2024.
Electricity in Alabama doesn’t come cheap. In August 2024, the average monthly bill was $225.65, which is more than 20% higher than the national average. Paired with some of the lowest average credit scores in the country (a separate LendingTree study reported), many residents face limited options when trying to manage unexpected costs.
Oklahoma
In Oklahoma, 42.1% of residents have cut back on essential expenses to keep up with utility payments. The state’s hot summers and essential use of air conditioning make electricity a non-negotiable cost for many families.
While Oklahoma’s average energy bills are closer to the national average, the underlying challenge lies in household income and financial resilience. Many residents in the state may not have the savings or credit access to weather even a modest increase in monthly costs, leading to tough spending choices.
Louisiana
Louisiana was the top state in last year’s LendingTree study, and while it dropped slightly in this year’s rankings, 41.7% of residents still reported sacrificing necessities to afford utilities.
Interestingly, Louisiana has the lowest electricity rates in the country at just 11.57 cents per kilowatt-hour, but still faces high average monthly bills. This is largely due to heavy energy usage, especially in the sweltering summer months. With energy demand high and incomes relatively low, the financial strain continues across the state.
Wyoming
Lastly, Wyoming rounded out the list with 41.5% of residents saying they’ve cut back on essential expenses to pay their energy bills. It’s the only non-Southern state in this top-five list.
Though Wyoming’s electricity rates remain low, the state saw one of the sharpest year-over-year increases in average utility bills, up 20.8% from August 2023 to August 2024. Add to that long, cold winters and a high percentage of residents keeping their homes at unsafe or unhealthy temperatures, and it’s clear why many are feeling the squeeze.
The Bottom Line
Across these five states, rising energy costs are forcing families to make difficult trade-offs. The issue goes beyond prices alone; it’s about how fragile household budgets can be in regions with lower incomes and limited financial flexibility.
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This article originally appeared on GOBankingRates.com: 5 States Where Americans Cut Necessary Expenses Most To Save on Utility Bills
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