Three in Five Americans Live Paycheck to ... - Yahoo Finance

New Reality Check: The Paycheck-To-Paycheck Report: The Inflation Edition is based on a census-balanced survey of 3,495 U.S. consumers ... U.S.marketsopenin1hour57minutesS&PFutures3,713.50+43.50(+1.19%) DowFutures29,612.00+269.00(+0.92%) NasdaqFutures11,474.25+158.00(+1.40%) Russell2000Futures1,685.10+22.60(+1.36%) CrudeOil77.54+0.83(+1.08%) Gold1,646.50+13.10(+0.80%) Silver18.69+0.22(+1.16%) EUR/USD0.9637+0.0025(+0.26%) 10-YrBond3.87800.0000(0.00%) Vix31.17+1.25(+4.18%) GBP/USD1.0815+0.0131(+1.23%) USD/JPY144.3700-0.3100(-0.21%) BTC-USD20,217.32+1,299.06(+6.87%) CMCCrypto200461.63+28.53(+6.59%) FTSE1007,013.90-7.05(-0.10%) Nikkei22526,571.87+140.32(+0.53%) ReadfullarticleOops!Somethingwentwrong.Pleasetryagainlater.MorecontentbelowLCSeptember27,2022,4:30AM·8minreadInthisarticle:Oops!Somethingwentwrong.Pleasetryagainlater.MorecontentbelowLC60%SayInflationhasAlteredHowTheyManageandSpendTheirMoneyMoreThanHalfofAmericansEarningBetween$100,000to$150,000LivePaychecktoPaycheckSANFRANCISCO,Sept.27,2022/PRNewswire/--LendingClubCorporation (NYSE:LC),theparentcompanyofLendingClubBank,America'sleadingdigitalmarketplacebank,todayreleasedfindingsfromthe14theditionoftheRealityCheck:Paycheck-To-Paycheck researchseries,conductedinpartnershipwithPYMNTS.com.Withinflationreachinga40-yearhighinJune,nearlyallconsumersreportnoticeableincreasesinthecostofeverydaypurchases.TheInflationEditionexaminesthefinanciallifestyleofU.S.consumerswholivepaychecktopaycheck,exploreshowinflationimpactstheirspendinganddetailssavingdecisionsandhowrisingpricesimpacttheirfinanciallifestyle.Shareofconsumerscitinghowconsiderabletheyfoundselectbillincreasesinthelast12monthsToday'sPaycheck-To-PaycheckLandscapeTheresearchplacespaycheck-to-paycheckconsumersintotwocategories:thosewhocanpaytheirmonthlybillswithoutdifficultyandthosewhostruggletodoso.InAugust2022,41%ofconsumerswerelivingpaychecktopaycheckwithoutdifficultypayingtheirmonthlybills,a10percentage-pointincreasefromSeptember2021andexceedsthe40%ofconsumerswhodonotlivepaychecktopaycheck."Moreconsumerslivingpaychecktopaycheckindicatesthatmanyarecontinuingtolosetheirfinancialstability,"saysAnujNayar,LendingClub'sFinancialHealthOfficer."Yet,theshareofconsumerslivingpaychecktopaycheckwithissuespayingtheirbillshasdropped7percentagepointsinthepastyear.Manyhavemovedtowhatnowmayconstituteastablelifestyle:livingpaychecktopaycheckbutstillmanagingtopayyourmonthlybills.Thereisjustnothingleftoverattheend."InAugust2022,threeinfiveU.S.consumerswerelivingpaychecktopaycheck,andclosetoone-fifthstruggledtopaytheirbills.Theshareofconsumerslivingpaychecktopaycheckhastrendedupwardovertime,increasingfrom57%inSeptember2021,andtherisehasbeenstrongestacrosshigh-incomeconsumers.InAugust2022,45%ofthoseearningmorethan$100,000peryearwerelivingpaychecktopaycheck,a7percentage-pointincreasefrom38%inSeptember2021.Sixty-twopercentofconsumersannuallyearningbetween$50,000and$100,000werelivingpaychecktopaycheck,upfrom57%inSeptember2021.StorycontinuesConsumersinthelowestrangeoftheupperincomebracketsareparticularlylikelytobeslidingtowardpaycheck-to-paychecklife:54%ofconsumerswhoannuallymakebetween$100,000and$150,000,morethandoublethemedianpersonalincomeintheU.S.,arelivingpaychecktopaycheck,anincreaseof7percentagepointsfromJuly2022.HowInflationImpactsConsumersWithinflationreachinga40-yearhighinJune,nearlyallconsumerscitednoticeableincreasesinthecostofeverydaypurchases.Fuelandgrocerieswerecitedmostforconsiderablepriceincreases.GaspricesexplainmostoftheConsumerPriceIndex(CPI)increases,andconsumersfelttheimpactacrossmultiplecategories,includingutilitiesandgroceries.Thereportfindsthat92%ofallconsumerswhopurchasedproductsinthelast30daysnoticedhigherpricesintheproductstheypurchased,while74%ofthosewhosehouseholdspaidarecurringbillinthelast30daysnotedbillincreasescomparedtoayearago.Eighty-threepercentofconsumerscitedveryorextremelyconsiderableincreasesinfuelprices,and69%saidthesameaboutgrocerypurchases.Additionally,morethan70%ofconsumersreportedincreasesinutilitybills,with47%consideringthesehikesveryorextremelysignificant.Thenexthighestincreasesinconsumers'reportsincludepublictransportation(45%),education(41%)andpersonalservices(40%).Similarsharesofpaycheck-to-paycheckconsumersreportedhigherpricesinbothproductsandservices,yetthosewithissuespayingtheirmonthlybillsweremorelikelytonotice.PYMNTS'datafindsthat59%ofpaycheck-to-paycheckconsumerswithissuespayingtheirmonthlybillsnotedthatutilitiesandpublictransportationsawveryorextremelyconsiderablepriceincreases,whileconsumerslivingpaychecktopaycheckwithoutdifficultypayingtheirmonthlybillswerelesslikelytonotethatutilities(47%)andpublictransportation(44%)hadveryorextremelyconsiderablepriceincreases.PYMNTS'dataalsofindsthatfinanciallifestylecandeterminewhatpaycheck-to-paycheckconsumersconsider"essential".Whileresponsesfromconsumersofallfinanciallifestylesindicatedthatgrocerieswere"essential",therewerenotabledifferencesforotherexpenses.Forexample,paycheck-to-paycheckconsumerswithissuespayingtheirmonthlybillswerelesslikelytopurchasefuelforacarorpaytheirutilitybillthanpaycheck-to-paycheckconsumerswithoutdifficultypayingtheirmonthlybillsandconsumersthatdonotlivepaychecktopaycheck.ManagingEverydayExpensesPYMNTS'researchfindsthat60%ofallconsumerswhonoticedpriceincreasesreporthavingtomakechangestohowtheymanageandspendmoney;withhalfoftheseconsumers,and51%ofthoseunderfinancialstress,sayingtheyhavemadeveryorextremelysignificantchanges.Consequently,mostconsumersreportchangesintheirshoppingpreferencesandlessspendingcapacity.Thereductioninpurchasingpowerischangingconsumers'purchasingbehaviorsineverythingfrommerchantchoicetotransportationhabits.One-quarterofconsumerswhochangedhowtheymanageandspendmoneyduetoinflationreportthatthishasforcedthemtobemoremoney-smart,while20%saytheyareshoppingatdifferentmerchantsduetomoneyconstraints.Thedataalsoshowsthatmostconsumerscitelimitingspendingcapacityandchangingshoppingpreferencesasthetopwaysinflationhascausedthemtochangehowtheymanageandspendtheirmoney.Whenconsumerschoosetospend,theyareutilizingcreditproductslikecreditcardstofundtheirlivesandmosthavenotnoticedchangestotheinterestratesofcreditproducts,eventhoughtheyareincreasinglyusingcreditwhiletighteningbudgets.Forexample,nearlyaquarterofpaycheck-to-paycheckconsumersareunawareoftheratestheypayforfinancing."ItisnosecretthatpriceshavebeenincreasingforeverydayAmericans–notonlyinthegoodsandservicestheypurchasebutalsointheinterestratesthey'repayingtofundtheirlives,"continuedNayar."WhileAmericansaremodifyingtheirspendinginlightofinflation,thereisstilladisconnectwithmanynotyetseeingthetruecostofcreditproducts.Thiscanhavedetrimentalconsequencesforsomeonewhopaystheminimumamountontheircreditcardseverymonth.Advisingconsumerstosimplycutbackonspendingtostayonbudgetandonlyspendon'essentials'isnolongerhelpfulfinancialadvice.'Essential'meanssomethingdifferentforeveryone."Consumers'OutlookonInflationbyRegionInflationhasanequalimpactonruralandurbanconsumers,withnearlyallconsumerscitingnoticeableincreasesintheireverydayexpenses.Fuelandgrocerieswerecitedmostforhavingsizableproductpriceincreases,withruralconsumersmorelikelytoreportincreasesthanurbandwellers.Althoughgenerallysimilarsharesofruralandurbanconsumersreporthigherpricesinbothproductsandservices,ruralconsumersareslightlymorelikelytodoso.While93%ofruraland92%ofurbanconsumersnoticedhigherpricesintheproductstheypurchased,76%ofruraland74%ofurbanconsumerssawincreasesintheirmonthlybills.Morethanone-thirdofruralconsumershavesignificantlychangedhowtheymanageandspendtheirmoney,whilejustone-quarterofurbanconsumershavedoneso.Urbanconsumersaremorelikelytolimittheirspendingandshifttheirshoppingpreferencesthanruralconsumers,however.Regardlessofwheretheylive,consumersarewellawarethatlivingcosts—especiallyfuel,groceries,andutilities—havebeenontherise,makingitincreasinglydifficulttomakeendsmeet.Consequently,consumersofallincomebracketsareadjustinghowtheymanagetheirspending,withmanyprioritizingtheir"essential"products.Toviewthefullreport,visit: https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-inflation-consumer-spend-expenses/MethodologyNewRealityCheck:ThePaycheck-To-PaycheckReport:TheInflationEditionisbasedonacensus-balancedsurveyof3,495U.S.consumersconductedfromAugust10toAugust29,2022.ThePaycheck-To-PaycheckseriesexpandsonexistingdatapublishedbygovernmentagenciessuchastheFederalReserveSystemandtheBureauofLaborStatisticstoprovideadeeplookintotheelementsthatlieatthebackboneoftheAmericanconsumer'sfinancialwellness:income,savings,debtandspendingchoices.OursamplewasbalancedtomatchtheU.S.adultpopulationinasetofkeydemographicvariables:51%ofrespondentsidentifiedasfemale,31%werecollege-educatedand36%declaredincomesofmorethan$100,000peryear.AboutLendingClub LendingClubCorporation(NYSE:LC)istheparentcompanyofLendingClubBank,NationalAssociation,MemberFDIC.LendingClubBankistheleadingdigitalmarketplacebankintheU.S.,wherememberscanaccessabroadrangeoffinancialproductsandservicesdesignedtohelpthempaylesswhenborrowingandearnmorewhensaving.Basedonmorethan150billioncellsofdataandover$75billioninloans,ouradvancedcreditdecisioningandmachine-learningmodelsareusedacrossthecustomerlifecycletoexpandseamlessaccesstocreditforourmembers,whilegeneratingcompellingrisk-adjustedreturnsforourloaninvestors.Since2007,morethan4millionmembershavejoinedtheClubtohelpreachtheirfinancialgoals.FormoreinformationaboutLendingClub,visithttps://www.lendingclub.com.CONTACT:ForInvestors:[email protected]:[email protected]:[email protected](NYSE:LC)istheparentcompanyofLendingClubBank,NationalAssociation,MemberFDIC.LendingClubBankistheleadingdigitalmarketplacebankintheU.S.CisionVieworiginalcontenttodownloadmultimedia:https://www.prnewswire.com/news-releases/three-in-five-americans-live-paycheck-to-paycheck-more-people-are-living-paycheck-to-paycheck-but-making-ends-meet-than-not-living-paycheck-to-paycheck-301633823.htmlSOURCELendingClubCorporationRelatedQuotesSymbolLastPriceChange%ChangeLCLendingClubCorporation11.12-0.27-2.37%1.FTXwinsVoyagerDigitalauctionbidfor$1.4billion2.Stockmarkettoday:4tickerstrendingonYahooFinance3.Stockmarketnewsliveupdates:StockfuturessurgeafterS&P500slidesto20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