In a time of rising prices and stagnant wages, more and more American households are feeling the squeeze.
According to a monthly report from LendingClub, 63 percent of Americans are currently living paycheck to paycheck, an increase from the previous month and near the historic high of 64 percent reached in March.
There’s no clear financial class divide either, as this is an issue even for high–income earners — 47 percent of those making over six figures reported they are also living paycheck to paycheck. Real average hourly earnings have slightly dropped since last year, according to the U.S. Bureau of Labor Statistics, leaving many Americans with no other option than to dip into their savings or rely on credit to make ends meet.
But that temporary solution is only adding to many people’s growing financial burden. Credit card rates are now more than 19 percent, on average — an all–time high — while credit card balances have surged 15 percent in the last few months alone.
“Americans are cash–strapped and their everyday spending continues to outpace their income, which is impacting their ability to save and plan,” said Anuj Nayar, LendingClub’s financial health officer. “With average savings stagnating, if not decreasing, setting financial goals for the new year will become increasingly difficult for many consumers.”
As that new year approaches, it’s clear Americans are increasingly worried about their finances. But with saving and planning becoming increasingly difficult for many households, the struggle to make ends meet is likely to continue.
