58% of Americans are living paycheck to paycheck after inflation spike — including 30% of those earning $250,000 or more

Jessica Dickler@JDICKLER

KEY POINTS

• With inflation still near 40-year highs, more than half of all Americans are living paycheck to paycheck, according to one report.
• Consumers who are struggling to afford their day-to-day lifestyle tend to rely more on credit cards and carry higher monthly balances making them financially vulnerable.
• Even top earners say they are stretched thin, the report found.

In this article

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With inflation at 40-year highs, workers across all income levels are having a harder time making ends meet.

As of May, 58% of Americans — roughly 150 million adults — live paycheck to paycheck, according to a new LendingClub report. That’s down slightly from 61% who reported living paycheck to paycheck in April but up from 54% in May 2021.

Even top earners say they are stretched thin, the report found. Of those earning $250,000 or more, 30% are living paycheck to paycheck. (Another recent survey, from consulting firm Willis Towers Watson, estimated 36% of those earning $100,000 or more are living paycheck to paycheck.)

“Consumers have experienced a tough last couple of years as different factors have affected their financial lifestyle, and there seems to be little relief in sight,” said Anuj Nayar, LendingClub’s financial health officer.

More from Personal Finance:
4 ways to save money at the pump
Strategies to help pay off credit card debt as interest rates rise
What people expect to spend more on as inflation surges

With inflation, paychecks don’t stretch as far

The consumer price index, a key inflation gage, rose 8.6% in May from a year ago, the highest increase since December 1981, spurred by surging housing, gasoline and food costs…….More Here

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