Share Of US Consumers Living Paycheck To Paycheck Stands At 59%, Trends Upward – Report

Fifty-nine p.c of customers within the United States lived paycheck to paycheck in July and that quantity is growing, a brand new report by PYMNTS and LendingClub revealed on Monday

WASHINGTON (UrduPoint News / Sputnik – twenty ninth August, 2022) Fifty-nine p.c of customers within the United States lived paycheck to paycheck in July and that quantity is growing, a brand new report by PYMNTS and LendingClub revealed on Monday.

“Our research finds that 59% of US consumers lived paycheck to paycheck in July 2022, a slight decrease from 61% in June,” the report mentioned. “Over the last twelve months, however, this share has trended upward, increasing from 54% in July 2021.”

The share of the customers who expertise difficulties in getting by is growing in most inhabitants subgroups, excluding solely customers incomes lower than $50,000 per 12 months which quantities to 74% in July versus 76% throughout that month final 12 months.

“All other consumers became more likely to be living paycheck to paycheck: 63% of those annually earning $50,000 to $100,000 were living paycheck to paycheck in July 2022, up from 55% in July 2021, as were 43% of those earning more than $100,000 per year, a 9 percentage-point increase from 34% in July 2021,” the report mentioned.

In order to keep away from issues with funds, many customers must borrow many by utilizing bank cards and use different credit score choices corresponding to private loans, the report mentioned.

“We also find that consumers are spending well over the Federal Reserve’s $400 benchmark for an emergency expense, a reality that makes a compelling case for the Federal Reserve to increase its financial threshold for consumers’ ability to cover an emergency expense,” the report mentioned.

At the identical time, virtually half of the customers who earn lower than $100,000 yearly mentioned they don’t expertise points with paying their payments, the report additionally mentioned.

“We also find that 39% of consumers earning between $100,000 and $150,000, 37% of those earning $150,000 to $200,000 and 24% of those earning more than $200,000 are living paycheck to paycheck without difficulty paying their bills,” the report added.