More than one-third of people earning more than $250,000 per year say they are living paycheck-to-paycheck, and while most say they are not having any problems covering their monthly expenses, it is yet another sign that inflation is causing problems for everyone, regardless of how much money they make, and that means that people may have less money to pay off their unpaid debts.
Thirty-six percent of households that earn $250,000 per year — more than four times the average annual household income — are using all of their money to cover their living expenses and are not able to put anything away as savings, according to the results of a survey. The problem is especially stark for millennials — those between the ages of 25 and 40; more than 50% of the members of that generation say they have nothing left at the end of the month after paying their bills.
Less than 10% of those earning at least $250,000 reported problem covering all of their household expenses, according to the survey.
Overall, 61% of consumers across all income brackets say they are living paycheck-to-paycheck, up from 52% a year ago.
Nearly 40% of all consumers are carrying debts on their credit card every month, according to the survey.
“The ongoing effects of once in a generation inflation are eating into the discretionary spending of Americans across all incomes and they are increasingly relying on credit products to cover the cashflow gaps,” said Anuj Nayar, the Financial Health Officer of LendingClub, which commissioned the survey.