With inflation at 40-year highs, employees throughout all earnings ranges are having a tougher time making ends meet.
As of Might, 58% of People — roughly 150 million adults — reside paycheck to paycheck, in response to a brand new LendingClub report. That is down barely from 61% who reported residing paycheck to paycheck in April however up from 54% in Might 2021.
Even prime earners say they’re stretched skinny, the report discovered. Of these incomes $250,000 or extra, 30% reside paycheck to paycheck. (One other latest survey, from consulting agency Willis Towers Watson, estimated 36% of those earning $100,000 or more reside paycheck to paycheck.)
“Customers have skilled a tricky final couple of years as various factors have affected their monetary way of life, and there appears to be little reduction in sight,” stated Anuj Nayar, LendingClub’s monetary well being officer.
These struggling to afford their day-to-day way of life are inclined to rely extra on bank cards and carry a better month-to-month stability, making them financially susceptible, the survey stated.
Total, bank card balances rose 12 months over 12 months, reaching $841 billion within the first three months of 2022, in response to a separate report from the Federal Reserve Financial institution of New York.