Press Release - LendingClub Corporation

The number of consumers living paycheck to paycheck has increased steadily since April 2021 and was 64% in January 2022 – 12 percentage points ... PressRelease 48PercentofAmericanswithAnnualIncomesover$100,000LivePaychecktoPaycheck,9percentagepointshigherthanfirstreportedinJune2021 03/03/2022 DownloadthePDFversion PDFFormat(opensinnewwindow) KeyInsightsfromLendingClub'sandPYMNTS'7thPaycheck-To-PaycheckReport SANFRANCISCO,March3,2022/PRNewswire/--LendingClubCorporation(NYSE:LC),theparentcompanyofLendingClubBank,America'sleadingdigitalmarketplacebank,todayreleasedfindingsfromitsseventheditionoftheRealityCheck:Paycheck-To-Paycheckresearchseries,conductedinpartnershipwithPYMNTS.com.TheWealthDivideEditionexamineswhyconsumersacrossdifferentincomebracketsarelivingpaychecktopaycheckandwhattheyseeasthemostprominentstressorsontheirfinances. Keytakeaway:Consumersofallincomebracketsareincreasinglylivingpaychecktopaycheck,includingthoseearninghigherincomes. TheCurrentPaycheckToPaycheckLandscape ThenumberofconsumerslivingpaychecktopaycheckhasincreasedsteadilysinceApril2021andwas64%inJanuary2022–12percentagepointshigherthanApril2021–witha3%jumpinjustamonthbetweenDecember2021andJanuary2022. Thedatashowsthat48%ofconsumersearningmorethan$100,000peryearreportedlivingpaychecktopaycheckinJanuary2022—upfrom42%inDecember2021.ThisnumberhasfluctuatedsinceMay2021,whenitwas39%,beforereachingahighof50%inNovember2021. Theshareofthosewhoearnbetween$50,000and$100,000whoreportlivingpaychecktopaycheckisalsoontherise.InMay2021,53%ofthesemiddle-incomeconsumerslivedpaychecktopaycheck.InJanuary2022,67%reportedlivingpaychecktopaycheck—upfrom66%inDecember2021. WealthAndLivingPaychecktoPaycheck Paycheck-to-paycheckconsumersfallintotwocategories:thosewhoareandthosewhoarenotstrugglingtopaytheirbills. TheshareofconsumerslivingpaychecktopaycheckbutnotstrugglingtopaytheirbillshasseenthelargestincreasesinceOctober2021,especiallyamonghigher-incomeconsumers. PYMNTS'researchfindsconsumerslivingpaychecktopaycheckandabletopaytheirbillsincreasedto42%inJanuary2022,risingfrom39%inDecember2021,while22%ofpaycheck-to-paycheckconsumersstillstruggledtopaytheirmonthlybills.Theresearchcontinuestofindongoingshiftsintheportionofconsumerslivingpaychecktopaycheck.AsofJanuary2022,theshareofconsumerswhodonotlivepaychecktopaycheckdeclinedto36%from39%inDecember2021.Just12%ofconsumerswhoearnmorethan$100,000 reportedlivingpaychecktopaycheckandstruggledtopaytheirbillsinJanuary2022.Thisrateissignificantlyhigheramongthoseearning$50,000to$100,000peryear(19%)andthoseearninglessthan$50,000(34%).Theranksofpaycheck-to-paycheckconsumerswhostruggletopaytheirmonthlybillshaveseenlittlefluctuation. ImpactOnSavings Dataindicatesthatthedifferenceinaveragesavingsbetweenconsumerslivingpaychecktopaycheckandstrugglingtopaytheirbillsandthosenotstrugglingwidenssignificantly atlowerincomebrackets.Thelargestgapinsavingslevelswasbetweenthoseearninglessthan$50,000peryearlivingpaychecktopaycheckandstrugglingtopaytheirbills,whoreportedaveragesavingsof$788,comparedto$4,369forthosenotstruggling. HandlingAnEmergencyExpense Researchshowsthatamongconsumerswhoearnmorethan$100,000,23%wholivepaycheck-to-paycheckandarestrugglingtopaytheirbillssaytheywouldnotbeabletopaya$400emergencyexpense.Thisshareofconsumersthatwouldnotbeabletopaysuchanemergencyexpenseunderstandablyincreasesamongmiddle-andlow-incomeconsumerswholivepaycheck-to-paycheckandarestrugglingtopaytheirbills.Fifty-twopercentofthosewhoearnlessthan$50,000and38%ofthoseearning$50,000to$100,000saidtheywouldnotbeabletopaya$400expense. Amongconsumersearningmorethan$100,000wholivepaychecktopaycheckandarestrugglingtopaytheirbills,33%woulduseacreditcardtocoveranemergencyexpenseandpayitoffovertime,while20%woulduseacreditcardandpayitoffinfull.High-incomeconsumerswholivepaychecktopaycheckbutarenotstrugglingtopaytheirbillsaremorelikelytouseacreditcardandpayitinfull(23%),andlesslikelytouseacreditcardandpayitovertime(21%). "Withinflationup7.5percentinthelast12months,consumersofallincomebracketsarestrugglingtofindawaytomakeendsmeet,"saidAnujNayar,FinancialHealthOfficeratLendingClub."EverydayweseeAmericansrelyingoncreditcardsasacrutch,whichisahorriblewaytoborrowmoneyifyoudon'tintendtopayofftheentirebalanceattheendofeverymonth.LendingClubisuniquelypositionedtoofferrealsupporttothoseinterestedinfindingwaystoleveragetheirdebt.ThatiswhymanyofourmembersuseLendingClubpersonalloansasatooltoconsolidateorrefinancecreditcarddebtwithafixedratesotheycanpayofftheirdebtresponsiblyandbuildahabitofsavings." Toviewthefullreport,visit:https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-wealth-divide-income-differences Methodology TheNewRealityCheck: ThePaycheck-To-PaycheckReportisbasedonacensus-balancedsurveyof2,633completeresponsesfromU.S.consumersconductedfromJan.11toJan.18,2022,aswellasananalysisofothereconomicdata. AboutLendingClubLendingClubCorporation(NYSE:LC)istheparentcompanyofLendingClubBank,NationalAssociation,MemberFDIC.LendingClubBankistheleadingdigitalmarketplacebankintheU.S.,wherememberscanaccessabroadrangeoffinancialproductsandservicesdesignedtohelpthempaylesswhenborrowingandearnmorewhensaving.Basedonmorethan150billioncellsofdataandover$70billioninloans,ourartificialintelligence-drivencreditdecisioningandmachine-learningmodelsareusedacrossthecustomerlifecycletoexpandseamlessaccesstocreditforourmembers,whilegeneratingcompellingrisk-adjustedreturnsforourloaninvestors.Since2007,morethan3.9millionmembershavejoinedtheClubtohelpreachtheirfinancialgoals.FormoreinformationaboutLendingClub,visithttps://www.lendingclub.com. CONTACT: ForInvestors:[email protected] MediaContact:[email protected]:[email protected] Vieworiginalcontenttodownloadmultimedia:https://www.prnewswire.com/news-releases/48-percent-of-americans-with-annual-incomes-over-100-000-live-paycheck-to-paycheck-9-percentage-points-higher-than-first-reported-in-june-2021--301494770.html SOURCELendingClubCorporation