Inflation is eroding financial security for millions of Americans.
A new LendingClub report shows that 63% of Americans live paycheck to paycheck, just down from the historic high of 64% set back in March.
A year ago, the number of adults who felt their finances were strained was closer to 57%.
And even high-income earners are feeling the burn, with 49% of those who earn more than six figures reporting living paycheck to paycheck. Last year, the number was 38%.
LendingClub’s financial health officer, Anuj Nayar, says, “Consumers are not able to keep up with the pace that inflation is increasing. Being employed is no longer enough for the everyday American. Wage growth has been inadequate, leaving more consumers than ever with little to nothing left after managing monthly expenses.”
In the latest reading of the consumer price index, prices for consumer goods and services were up 8.2% year over year, but actual average hourly earnings fell 3% from a year ago.
More and more people are going into debt and draining savings to live month to month.
And it’s hard to tell when things could get better. The Feds may continue to raise interest rates to combat inflation, putting the pinch elsewhere on Americans.