An increasing percentage of Americans are living a paycheck-to-paycheck existence, according to a new survey conducted by LendingClub Corp., the parent company of LendingClub Bank, in partnership with PYMNTS.com.
In a poll of 3,583 adults, 61% of respondents said they were living paycheck-to-paycheck, up from 55% in June 2021; the record low was 52% in April 2021. The biggest rise in paycheck-to-paycheck consumers involved those earning between $100,000 and $150,000, up 11 percentage points from May to 52% in June.
The average savings for these Americans was $10,757 in June, down from $11,724 in May. And while the average consumer stored 11% of their savings in either stocks or bonds, half of all stockholders reported their portfolios recently lost value in the last three months during the upheaval in the financial markets.
But not every American is trying to save money ”“ the study also found 13% of respondents spent more than they earned in the past six months.
“What a difference a year makes,” said Anuj Nayar, LendingClub”™s financial health officer. “Last summer we were all worried about how quickly the economy would recover. Now, as inflation continues its upwards swing, consumers are finding it more difficult to manage spending and are eating into their savings as financial pressures mount.
“That said, consumers are not yet slowing down their spending habits, despite the rise in the cost of living,” Nayar added. “Not only is it going to be difficult for them to handle future emergency expenses, but even foreseen payments like education, student loans, or housing expenses may be harder to balance for the everyday American consumer.”
