{"id":16421,"date":"2023-09-02T14:58:43","date_gmt":"2023-09-02T14:58:43","guid":{"rendered":"https:\/\/isafespend.com\/credit-cards\/all-income-brackets-now-living-paycheck-to-paycheck-study\/"},"modified":"2023-09-02T14:58:44","modified_gmt":"2023-09-02T14:58:44","slug":"all-income-brackets-now-living-paycheck-to-paycheck-study","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=16421","title":{"rendered":"All income brackets now living paycheck to paycheck: Study"},"content":{"rendered":"
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Inflation, mortgage rates over 7% and credit card APR’s north of 20% have pushed all income brackets into living paycheck to paycheck, according to a new survey from Lending Club Bank.<\/p>\n

The paycheck-to-paycheck reality \u00a0<\/strong><\/h3>\n

“In July 2023, 61% of U.S. consumers live paycheck to paycheck, unchanged from June 2023, but 2 percentage points higher than July 2022. Generally, more consumers of all income brackets reported living paycheck to paycheck in July 2023 than last year,” Alia Dudum, a money expert at LendingClub told FOX Business.\u00a0<\/p>\n

AUGUST JOBS BREAKDOWN: WHICH INDUSTRIES ARE HIRING<\/strong><\/p>\n

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  • The share of low-income consumers \u2014 those earning less than $50,000 annually \u2014 living paycheck to paycheck increased the most, rising from 74% in July 2022 to 78% in July 2023.<\/li>\n
  • Among consumers earning between $50,000 to $100,000 annually, 65% lived paycheck to paycheck as of July 2023, compared to 63% in July 2022.<\/li>\n
  • Meanwhile, the share of high-income consumers \u2014 those earning more than $100,000 annually \u2014 living paycheck to paycheck increased the least, just 1 percentage point from 43% in July 2022 to 44% this year.<\/li>\n<\/ul>\n
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    “The data indicates the persistent financial challenges and inflationary pressures a significant portion of the U.S. population faces,” Dudum said.<\/p>\n

    Common causes of being unable to save<\/strong><\/h3>\n

    Dudum said the study revealed living “paycheck-to-paycheck” is independent of how much money one makes, and a majority of Americans need their next paycheck to cover their monthly financial outflows.\u00a0<\/p>\n

    “With the cost of consumer goods increasing, coupled with a higher cost of living, many Americans have less available cash every month, which reduces their overall financial cushion and puts near-term pressure on their ability to save,” Dudum explained.<\/p>\n

    “At the same time, rising interest rates make carrying a balance on credit cards even more expensive, meaning servicing that debt costs more, leaving less for savings.”<\/p>\n

    The Federal Reserve has raised interest rates 11 times since March 2022.\u00a0<\/p>\n

    SILVER LINING OF HIGHER INTEREST RATES: SAVINGS ACCOUNT RATES<\/u><\/strong><\/p>\n