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The study revealed that the portion of Americans who reported living paycheck to paycheck increased in the past year, with a majority of newcomers to this category being high earners.
By December, the LendingClub report indicated 64% of Americans were just surviving from paycheck to paycheck, compared to 61% from the same period the year before – concurrently reaching a historical high that was initially accomplished in March 2020.
An increase of 10%, reaching a record high of over half of all those who earned six figures, claimed to find themselves financially stretched too far in comparison to 42% in the previous year.
The Federal Reserve is expected to proclaim its eighth successive rate hike at the policy meeting this week. Despite salary increase being higher than before, it is unable to keep up with the rising cost of living, which was 6.5% higher in December compared to the preceding year.
With inflation and prices on the rise, a number of Americans are finding themselves in a difficult situation, compelled to use up their savings or to rely on credit as interest rates are increasing significantly faster than in recent decades.
