Report Finds 60% of Consumers Across All Income Levels Living Paycheck-to-Paycheck
A recent report from PYMNTS and LendingClub found that almost 60 percent of U.S. consumers across all income levels reported living paycheck-to-paycheck in August, a slight decrease from the 61.4 percent that was reported in July. Nearly 20 percent of those living paycheck to paycheck reported issues paying bills, while almost 41 percent have no issues paying bills.
The report found that 45 percent of consumers earning over $100,000 annually are living paycheck to paycheck, as well as 62 percent of consumers making between $50,000 and $100,000 each year and 76 percent of those earning less than $50,000 annually. According to the report, none of these figures changed from August 2022.
Earlier reports from this year have also found that roughly 60 percent of Americans report living paycheck to paycheck. The Hill noted that a report conducted by the same organizations earlier this year found that 9.3 million more people reported living paycheck to paycheck last year than in 2021.
Additionally, nearly half of all consumers say that their financial stability changes seasonally, including about one-third of consumers who report that they don’t live paycheck to paycheck.
Consumers who live paycheck to paycheck experience seasonal financial distress predominantly due to paying for family members and nonessential spending, which especially increases in December during the holiday season. Over one-third of all consumers say they experience financial distress in December.
The survey included responses from 4,218 consumers in the United States, and was conducted between August 2-15.