Most Americans living paycheck to paycheck as inflation squeezes

Adam Barnes
·2 min read
8

Story at a glance

  • A recent survey by LendingClub in partnership with PYMNTS.com found that 60 percent of consumers are living paycheck to paycheck.

  • Close to one-fifth of these consumers struggle to pay their monthly bills.

  • Inflation is also impacting some of the nation’s high earners, the survey showed, as 45 percent of those earning more than $100,000 per year were living paycheck to paycheck.

Nearly three in five Americans are living paycheck to paycheck as inflation continues to pinch pockets nationwide.

A recent survey by LendingClub in partnership with PYMNTS.com found that 60 percent of consumers are living paycheck to paycheck, and close to one-fifth of these consumers struggle to pay their monthly bills.

Yet inflation is also impacting some of the nation’s high earners, the survey showed, as 45 percent of those earning more than $100,000 per year were living paycheck to paycheck. This marks a 7 percentage-point increase since September 2021.

The survey found more than half of American consumers earning between $100,000 and $150,000 live one paycheck to the next — rising 7 percentage-points from July.

“More consumers living paycheck to paycheck indicates that many are continuing to lose their financial stability,” Anuj Nayar, LendingClub’s Financial Health Officer, said in a media release.

“Yet, the share of consumers living paycheck to paycheck with issues paying their bills has dropped 7 percentage points in the past year. Many have moved to what now may constitute a stable lifestyle: living paycheck to paycheck but still managing to pay your monthly bills. There is just nothing left over at the end.”

Gas prices fell substantially from their peak in June while the prices of other household goods and energy sources rose, leading to a slight increase in inflation in August.

The Consumer Price Index, a key measure of inflation, rose by 0.1 percent last month despite the continued decline of gasoline prices. But gas prices have gone up steadily over the last week reaching a nationwide average of $3.79 per gallon on Friday, according to the American Automobile Association (AAA).

Labor Department data released earlier in September shows consumer prices rising 8.3 percent over last year with some of the highest price increases seen in the nation’s grocery aisles.

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LendingClub’s report found nearly all consumers who purchased products in the thirty days leading up to the survey experienced price increases, while three quarters of households saw a rise in a recurring monthly bill over the past year – 70 percent reported an increase in a utility bill. Both urban and rural consumers reported price hikes.

The report is based on a census-balanced survey of 3,495 U.S. consumers conducted from August 10 to August 29, 2022.

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