Inflation Forcing More Americans to Live Paycheck to Paycheck

2 months ago 16

Persistent inflation is forcing much and much Americans to live paycheck to paycheck, according to a new report from the Lending Club.

The report, a collaboration between LendingClub and fiscal quality and investigation level PYMNTS, is based connected information from a survey of 3,495 U.S. consumers conducted betwixt Aug. 10 and Aug. 29, 2022.

It recovered that three successful 5 U.S. consumers were surviving paycheck to paycheck successful August, with astir one-fifth of those stating that they struggled to wage their bills.

According to the report, among American consumers earning between $100,000 and $150,000 annually, 54 percent are surviving paycheck to paycheck, marking an summation of 7 percent points from July 2022.

Overall, the fig of Americans living paycheck to paycheck has accrued implicit time, with 62 percent of consumers earning between $50,000 and $100,000 annually are surviving paycheck to paycheck successful August, up from 57 percent in September 2021, according to the report.

High-income earners were not immune to the impacts of ostentation either, according to the report, which recovered that 45 percent of those earning much than $100,000 per twelvemonth were surviving paycheck to paycheck, marking a 7 percentage-point summation from September 2021, erstwhile conscionable 38 percent said they were living paycheck to paycheck.

The study comes arsenic ostentation has deed 40-year highs, eating distant astatine the spending powerfulness of Americans who are forking retired much for everything, from nutrient to gasoline and rent.

Households Feeling the Strain

A abstracted Gallup poll published earlier successful September recovered that the bulk of Americans said that terms increases person resulted in financial hardship for their household.

The results are based connected an Aug. 1–22 web survey of 1,500 members of Gallup’s probability-based panel.

It recovered that 56 percent of Americans said price increases are causing fiscal hardship for their household, up from 49 percent successful January and 45 percent successful November. Of those respondents who said the rising outgo of surviving had resulted successful fiscal hardship, 12 percent said this was “severe” hardship and 44 percent said it was “moderate.”

Despite this, the Biden medication has maintained its rhetoric that ostentation levels are hardly shifting, and that a recession isn’t connected the cards, portion the Federal Reserve has continued to instrumentality assertive interest-rate hikes successful an effort to chill down red-hot inflation, initiating another 75 basis-point complaint hike connected Sept. 21.

“More consumers surviving paycheck to paycheck indicates that galore are continuing to suffer their fiscal stability,” said Anuj Nayar, fiscal wellness serviceman for LendingClub.

“Yet, the stock of consumers surviving paycheck to paycheck with issues paying their bills has dropped 7 percent points successful the past year. Many person moved to what present whitethorn represent a unchangeable lifestyle: surviving paycheck to paycheck, but inactive managing to wage your monthly bills. There is conscionable thing near implicit astatine the end.”

Katabella Roberts

Follow

Katabella Roberts is simply a quality writer for The Epoch Times, focusing chiefly connected the United States, world, and concern news.