A recent study reveals that 63% of Americans are living paycheck to paycheck, highlighting the financial strain many households are experiencing.
According to LendingClub’s monthly report and poll, the percentage of Americans struggling to make ends meet has increased from 60% the previous month to 63%, approaching the historic high of 64% recorded in March.
With the continued rise in living costs, an increasing number of families find themselves financially stretched thin.
The survey, which included approximately 3,900 participants, indicated that this issue affects not only low-income earners but also higher-income households.
“Americans are financially strained, with everyday expenses outpacing their income, making it difficult for them to save and plan for the future,” said Anuj Nayar, LendingClub’s financial health officer.
Even those earning $100,000 or more annually are feeling the pinch, with 47% of high-income respondents reporting that they live paycheck to paycheck, up from 43% the previous month.
According to the latest data from the U.S. Bureau of Labor Statistics, real average hourly earnings have decreased by 1.9% compared to the previous year.
To make matters worse, credit card balances have surged by 15% in the most recent quarter, marking the largest annual increase in over 20 years.
