Over Half of Americans are Living Paycheck to Paycheck

Woman holding money

PYMNTS and LendingClub released a new report showing that a staggering 61% of U.S. adults lived paycheck to paycheck in June. That’s an increase from 58% in May and 55% in June 2021.

Anuj Nayar, LendingClub’s Financial Health Officer stated, “Last summer, we were all worried about how quickly the economy would recover. Now, as inflation continues its upwards swing, consumers are finding it more difficult to manage spending and are eating into their savings as financial pressures mount.”

Even with prices rising, consumers are not yet slowing their spending habits. About 13% of Americans spent more than they made in the past six months. With the increases, savings accounts are also decreasing. Savings declined from $11,724 in May 2022 to $10,757 in June 2022., according to The Hill.

Living paycheck to paycheck does not necessarily mean that someone cannot afford their necessities. It can refer to people who spend a large majority of income on basic expenses. Low-income households tend to be hit the hardest, but even high-income earners are being hit.

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