Families are feeling stretched too thin as rising prices continue to burden them.
According to a monthly LendingClub report cited by CNBC, 63% of Americans lived paycheck to paycheck in November, up from 60% the previous month and near the March high of 64%.
LendingClub found that even high-income earners are under pressure. More than half of those earning more than six figures reported living paycheck to paycheck, up from 43% last month.
LendingClub’s financial health officer said in a statement, “Americans are cash-strapped and their everyday spending continues to outpace their income, which is impacting their ability to save and plan.”
The November consumer price increase was less than expected, but persistent inflation has lowered real wages.
Compared to a year ago, real average hourly earnings are down 1.9%, according to the Bureau of Labor Statistics.
Inflation and higher prices force many Americans to dip into their cash reserves or take out loans at a time when interest rates are rising at the fastest pace in generations.
In the most recent quarter, credit card balances rose 15%, the largest annual jump in more than 20 years.
Meanwhile, credit card interest rates are at an all-time high of more than 19%, on average.
According to LendingClub, 32% of consumers are saving less than they were a year ago. Half of those struggling financially are unable to save and have no savings at all.
Faced with recession and job losses, many hard working Americans are feeling the strain of Biden’s economic policies. The recent survey released by LendingClub paints a grim reality, revealing just how bad the situation has become. 63% of Americans are now living paycheck to paycheck, up from 60% in October and near the March high of 64%. Even high-income earners are not immune to these hardships, as they struggle amid rising prices and recessionary pressure. Most alarmingly, Biden continues to ignore this trend and fails to acknowledge the grim reality faced by almost all Americans. It serves as a stark reminder of how much more prosperous things were under President Trump just a few short years ago.