64% of the U.S. population is living paycheck to paycheck, according to a report.
The cost of living is straining households EVERYWHERE. Everything continues to go up except our paychecks.
As daily life continues to get more and more expensive, workers are having a harder time making ends meet.
“With inflation up 7.5 percent in the last 12 months, consumers of all income brackets are struggling to find a way to make ends meet,” a financial health officer with LendingClub, Anuj Nayar, says in the report. “Every day we see Americans relying on credit cards as a crutch, which is a horrible way to borrow money if you don’t intend to pay off the entire balance at the end of every month.”
Out of all the Americans who participated in LendingClub’s research study who say they make over $100,000 a year, 48% report they are living paycheck to paycheck.
When wages rise at a slower pace than inflation, those paychecks don’t go as far at the supermarket and the gas station — two areas of Americans’ budgets that are struggling the most right now.
“Wages are up 5.1% over the past year, which is trailing the pace of inflation,” said Bankrate.com senior economic analyst Mark Hamrick. “Indeed, surging prices are stealing the show on the minds of consumers.”
Inflation is Outpacing Wage Growth
“The number of people living paycheck to paycheck today is reminiscent of the early days of the pandemic and it has become the dominant lifestyle across income brackets,” said Anuj Nayar, Financial Health Officer at LendingClub. “As inflation we have not seen in a generation takes more of our paychecks for everyday needs, Americans across incomes and credit scores are increasingly relying on credit products just to get by. That is why the financial services industry must offer better tools to help bridge the gap.”
Can’t imagine living pay check to pay check on $100,000 a year!! People always ask me why I don’t buy a home in or this toy or that toy and today is the reason why I only buy my toys with cash.