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More than 60% of Americans are living paycheck to paycheck. Here's what researchers say is to blame.


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About 61% of Americans are living paycheck to paycheck, an issue that impacts both low-wage and high-income families alike, according to new research from LendingClub. 

Low-wage earners are most likely to live paycheck to paycheck, with almost 8 in 10 consumers earning less than $50,000 a year unable to cover their future bills until their next paycheck arrives. Yet even 4 in 10 high-income Americans, or those earning more than $100,000, say they're in the same position, the research found.

Such a situation is viewed as financially risky because it means those households don't have enough savings to tide them over in case of an emergency, indicating that they are unable to cover their upcoming bills until their next payday. The rate of Americans who are living paycheck to paycheck is on the rise, up 2 percentage points from a year earlier, the analysis found.

 

Inflation is partly to blame, with consumers still grappling with higher prices — although prices have cooled since hitting a 40-year high of 9.1% in June 2022. But a minority of paycheck-to-paycheck consumers point to another issue that's impacting their financial stability: nonessential spending on items such as travel, eating out and streaming services, the analysis found.

 

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1 minute ago, BritManToo said:

Most people don't earn enough to get ahead any more. It's not like it was in the west when we were in the workforce.

But they are still having kids they can't afford, and living beyond their means.  Too much borrowed credit for depreciating purchases.  

 

Pointed out by the $100k+ bracket, and still struggling.  How is that even possible?

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