US consumers in all income brackets including those earning more than $100,000 a year are increasingly living paycheck-paycheck, according to a study by digital market place bank, LendingClub Corporation.
According to the study 48% of consumers earning more than $100,000 a year were living paycheck to paycheck in January 2022 compared to 42% in December 2021. Among middle-income consumers earning between $50,000 and $100,000, 67% reported living paycheck to paycheck.
“With inflation up 7.5 percent in the last 12 months, consumers of all income brackets are struggling to find a way to make ends meet,” said Anuj Nayar, Financial Health Officer at LendingClub. “Every day we see Americans relying on credit cards as a crutch, which is a horrible way to borrow money if you don’t intend to pay off the entire balance at the end of every month.
Of those earning more than $100,000 12% are struggling to pay their bills, of those earning between $50,000 and $100,000 19% are struggling to pay their bills and of those earning less than 50,000 34% are struggling with payments.