Feeling the pinch? You’re definitely not alone – as the number of Americans living paycheck to paycheck is nearing an all-time high. A new report from financial services company LendingClub has found 63% are depending on their next paycheck to make ends meet.
That's an increase of three-percent from October. The figure hit an all-time high of 64-percent back in March as inflation began to take a hold on consumers. “Americans are cash-strapped,” says Anuj Nayar, LendingClub’s financial health officer. “And their everyday spending continues to outpace their income, which is impacting their ability to save and plan.”
What gives? Average people know the answer as much as the experts – everything costs more. But the experts note that real average hourly earnings are down 1.9% from a year ago. And compared to a year ago, 32% of all consumers are saving less than they were before.
- As for how bad it is, a separate survey by the Bipartisan Policy Center finds that about a third of working adults feel “somewhat” or “very uncomfortable” about their ability to pay an emergency $400 expense. Nearly 8% wouldn’t be able to afford it at all.
Source: CNBC