Almost two-thirds of Americans – 61 percent – admit to living paycheck-to-paycheck, representing a two percent increase compared to 2023, according to a recent report conducted by the LendingClub, which surveyed 3,443 U.S. consumers.
Those earning less were predictably hit hardest by the rising costs, interest rates, and inflation over the past year. A staggering 78 percent of those earning less than $50,000 per year, as well as 65 percent of those earning between $50,000 and $100,000, admit to living paycheck-to-paycheck – both up in comparison to 2022.
A further 70 percent of Americans say they are “stressed” about their finances largely due to “inflation, rising interest rates, and a lack of savings” to fall back on. Only 45 percent of Americans were found to have emergency savings, with 26 percent of those admitting that they have less than $5,000 saved for emergencies.
“Consumers are undoubtedly continuing to feel the impact of inflation and rising interest rates,” argues Chris Fred, TD Bank’s head of credit cards and unsecured lending.
Americans are simultaneously experiencing an “all-time low” in housing affordability, with the average person having to meet monthly mortgage payments of over $2,600.
