More than half of Americans live paycheck to ... - CNBC

58% of Americans are living paycheck to paycheck after inflation spike — including 30% of those earning $250,000 or more. SkipNavigationMarketsBusinessInvestingTechPoliticsCNBCTVWatchlistInvestingClubPROMenuKeyPointsWithinflationstillnear40-yearhighs,morethanhalfofallAmericansarelivingpaychecktopaycheck,accordingtoonereport.Consumerswhoarestrugglingtoaffordtheirday-to-daylifestyletendtorelymoreoncreditcardsandcarryhighermonthlybalancesmakingthemfinanciallyvulnerable.Eventopearnerssaytheyarestretchedthin,thereportfound.InthisarticleLCFollowyourfavoritestocksCREATEFREEACCOUNTwatchnowVIDEO7:1407:14PersonalfinanceexpertSuzeOrman'snumberoneinvestmentrightnowPowerLunchWithinflationat40-yearhighs,workersacrossallincomelevelsarehavingahardertimemakingendsmeet.AsofMay,58%ofAmericans—roughly150millionadults—livepaychecktopaycheck,accordingtoanewLendingClubreport.That'sdownslightlyfrom61%whoreportedlivingpaychecktopaycheckinAprilbutupfrom54%inMay2021.Eventopearnerssaytheyarestretchedthin,thereportfound.Ofthoseearning$250,000ormore,30%arelivingpaychecktopaycheck. (Anotherrecentsurvey,fromconsultingfirmWillisTowersWatson,estimated36%ofthoseearning$100,000ormorearelivingpaychecktopaycheck.)"Consumershaveexperiencedatoughlastcoupleofyearsasdifferentfactorshaveaffectedtheirfinanciallifestyle,andthereseemstobelittlereliefinsight,"saidAnujNayar,LendingClub'sfinancialhealthofficer.MorefromPersonalFinance:4waystosavemoneyatthepumpStrategiestohelppayoffcreditcarddebtasinterestratesriseWhatpeopleexpecttospendmoreonasinflationsurgesWithinflation,paychecksdon'tstretchasfarTheconsumerpriceindex,akeyinflationgage,rose8.6%inMayfromayearago,thehighestincreasesinceDecember1981,spurredbysurginghousing,gasolineandfoodcosts.Thoserisingpricesmeantworkerstookanotherpaycutduringthemonth.Whenwagesriseataslowerpacethaninflation,paycheckswon'tstretchasfaratthegrocerystoreorthegaspump—makingitmoredifficulttocovermonthlyexpensesandsetsomemoneyaside.CreditcardbalancescontributetofinancialvulnerabilityThosestrugglingtoaffordtheirday-to-daylifestyletendtorelymoreoncreditcardsandcarryahighermonthlybalance,makingthemfinanciallyvulnerable, thesurveysaid.Overall,creditcardbalancesroseyearoveryear,reaching$841billioninthefirstthreemonthsof2022,accordingtoaseparatereportfromtheFederalReserveBankofNewYork.watchnowVIDEO2:3202:32ConsumerFinancialProtectionBureaumonitorsconsumerdebtamidhighinflationSquawkBoxAtthisrate,balancescouldsoonreachrecordlevelsamidhigherpricesforgas,groceriesandhousing,amongothernecessities,accordingtoTedRossman,aseniorindustryanalystatCreditCards.com.Foritspart,theFederalReserve hasbeenhikingitstargetfederalfundsrate inanefforttocalm runawayinflation.However,anyonecarryingabalancewillalsoseetheannualpercentagerateontheircreditcard headhigherasthe Fed continuestoraiserates totryandtampdown risingprices.SubscribetoCNBConYouTube.TVWATCHLIVEWATCHINTHEAPPUPNEXT|ETListenTVWATCHLIVEWATCHINTHEAPPUPNEXT|ETListen