Share Of US Consumers Living 'Paycheck To Paycheck' Stands At 59%, Trends Upward - Report

Fifty-nine percent of consumers in the United States lived paycheck to paycheck in July and that number is increasing, a new report by PYMNTS and LendingClub revealed on Monday

WASHINGTON (UrduPoint News / Sputnik - 29th August, 2022) Fifty-nine percent of consumers in the United States lived paycheck to paycheck in July and that number is increasing, a new report by PYMNTS and LendingClub revealed on Monday.

"Our research finds that 59% of US consumers lived paycheck to paycheck in July 2022, a slight decrease from 61% in June," the report said. "Over the last twelve months, however, this share has trended upward, increasing from 54% in July 2021."

The share of the consumers who experience difficulties in getting by is increasing in most population subgroups, excluding only consumers earning less than $50,000 per year which amounts to 74% in July versus 76% during that month last year.

"All other consumers became more likely to be living paycheck to paycheck: 63% of those annually earning $50,000 to $100,000 were living paycheck to paycheck in July 2022, up from 55% in July 2021, as were 43% of those earning more than $100,000 per year, a 9 percentage-point increase from 34% in July 2021," the report said.

In order to avoid problems with payments, many consumers have to borrow many by using credit cards and use other credit options such as personal loans, the report said.

"We also find that consumers are spending well over the Federal Reserve's $400 benchmark for an emergency expense, a reality that makes a compelling case for the Federal Reserve to increase its financial threshold for consumers' ability to cover an emergency expense," the report said.

At the same time, almost half of the consumers who earn less than $100,000 annually said they do not experience issues with paying their bills, the report also said.

"We also find that 39% of consumers earning between $100,000 and $150,000, 37% of those earning $150,000 to $200,000 and 24% of those earning more than $200,000 are living paycheck to paycheck without difficulty paying their bills," the report added.