- 62% of US consumers now live paycheck to paycheck
- Housing costs, grocery bills, and regular personal expenses make up debt
- High levels of debt are another major contributor
Some 62% of US consumers now live paycheck to paycheck, according to PYMNTS Intelligence‘s “Paycheck-to-Paycheck Report: Why One-Third of High Earners Live Paycheck to Paycheck,”
This figure includes a surprising 36% of those with annual incomes exceeding $200,000 and nearly half of those earning over $100,000. The report, drawing insights from 4,285 consumers and supplementary economic data, reveals that the financial struggle is pervasive across all income levels.
Housing costs, grocery bills, and regular personal expenses consume significant portions of monthly earnings, exacerbating the paycheck-to-paycheck lifestyle. For low-income earners (those earning less than $50,000 annually), approximately 75% live paycheck to paycheck, with low wages being a primary factor. Middle-income earners (earning between $50,000 and $100,000 annually) and high-income earners (earning over $100,000 annually) also report similar financial struggles, with 66% and 48% living paycheck to paycheck, respectively.
High levels of debt are another major contributor, especially among high-income (28%) and middle-income (26%) earners. Notably, 23% of those earning over $200,000 annually cite family expenses as a significant financial burden, similar to 18% of those in the income bracket below.
Medical bills, while often highlighted as a leading cause of debt, account for a smaller percentage of financial woes among paycheck-to-paycheck consumers. Despite more people being employed and earning higher wages, only 5% of respondents across any income bracket indicated that unstable employment was a top reason for their financial struggles.
The report highlights that poor financial choices, combined with rising costs of essentials like housing and groceries, contribute to the precarious financial standing of many Americans. As these costs continue to rise, the financial difficulties faced by consumers are expected to persist.
