• Skip to main content
  • Skip to secondary menu
  • Skip to footer

PXEF.com

Pixel Effect: Visual Storytelling

  • Sponsored Post
  • About
    • GDPR
  • Calendar
  • Domain Aftermarket
  • Contact

65 Percent of Paycheck-to-Paycheck Consumers Experienced a Financially Stressful Event in the Past Three Years

June 27, 2022 By admin Leave a Comment

3 in 10 Earning Over $250,000 Continue to Live Paycheck to Paycheck

Nearly 40% of Those Earning Over $250,000 Cite Paying for a Family Members’ Expenses as a Driver of Financial Distress

SAN FRANCISCO, June 27, 2022 – LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today released findings from the 11th edition of the Reality Check: Paycheck-To-Paycheck research series, conducted in partnership with PYMNTS.com. The Financial Distress Factors Edition examines the financial lifestyle of U.S. consumers who live paycheck to paycheck, the factors that cause financial distress – life-cycle events or life-altering events – and the impact of these financial stressors on their lives.

I have a dream, American dream
I have a dream, American dream

Key Takeaways: 65% of paycheck-to-paycheck consumers have experienced a financially stressful event in the past three years, with sudden income disruptions such as losing a job being the most common. Moreover, half of paycheck-to-paycheck consumers say their salary only covers basic expenses and is one reason behind their financial distress.

“Consumers have experienced a tough last couple of years as different factors have affected their financial lifestyle and there seems to be little relief in sight,” said Anuj Nayar, LendingClub’s Financial Health Officer. “While the specific nature of the event that causes financial distress may vary, it’s clear we all need to plan for the unexpected. It’s simply a matter of time before something will come up to knock even the best laid financial plans askew.”

Living paycheck to paycheck means devoting all of one’s salary to expenses with little to nothing left over at the end of the month, yet many of these consumers remain credit-worthy, actively managing their cash flows in real time. Paycheck-to-paycheck consumers fall into two categories: those who can pay their monthly bills easily and those who struggle to do so.

The Impact of Major Life Events on Living Paycheck To Paycheck
To understand the drivers of financial distress, this report surveyed consumers about life-cycle events such as getting married or divorced, birth of a child, moving residences and retirement, and financially life-altering events such as a job loss, serious illness, disability, or major unexpected expenses such as a natural disaster or lawsuit.

According to the data, more than half of U.S. consumers have faced either a life-cycle event or a life-altering event in the last three years. Life-cycle events, such as marriage or having a child, are the most common events, with 38% of consumers overall having experienced these situations in the last three years. The share jumps to 51% among millennials but drops to 30% among baby boomers and seniors. Life-altering events such as losing a job or facing serious illness in the household occurred to 33% of all consumers in the last three years.

While low income is cited as a cause of financial distress, paycheck-to-paycheck consumers from high-income brackets and large households cite paying for a family member’s expenses as a driver of financial distress. In fact, nearly 40% of paycheck-to-paycheck consumers earning more than $250,000 say this is a factor driving their financial struggles.

How Paycheck-To-Paycheck Consumers Save
One in five consumers living paycheck to paycheck have spent more than what they have earned in the last six months, with those struggling to pay bills seeing their savings cut in half over the past year. Close to half of all paycheck-to-paycheck consumers say their salary only covers basic expenses and is a reason behind their financial distress. While many consumers leverage credit as a financial tool to manage expenses and cash flow during financially distressing events, high-income consumers tend to use it more.

“Setting an automatic transfer to a savings account, even if it’s a small amount, can help you weather the next storm because it’s not if you’ll need the cash, but when. Credit can also be an effective tool to help with expenses during financially distressing events, but those struggling financially should exercise caution,” continued Nayar. “Credit card interest rates are rising, and, if you don’t intend to pay your bills in full monthly, you could potentially get into a steep revolving debt trap. For those looking for relief, consider refinancing high-interest debt into a lower cost installment loan.”

To view the full report, visit: https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-financial-distress-consumer-savings-credit/

Methodology
New Reality Check: The Paycheck-To-Paycheck Report is based on a census-balanced survey of 3,708 U.S. consumers conducted from May 10 to May 23. The Paycheck-To-Paycheck series expands on existing data published by government agencies such as the Federal Reserve System and the Bureau of Labor Statistics to provide a deep look into the elements that lie at the backbone of the American consumer’s financial wellness: income, savings, debt and spending choices. Our sample was balanced to match the U.S. adult population in a set of key demographic variables: 52% of respondents identified as female, 32% were college-educated and 36% declared incomes of over $100,000 per year.

About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $70 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.

SOURCE LendingClub Corporation

Filed Under: Blog Tagged With: american dream, concept, inflation, media, meme

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Footer

Recent Posts

  • The Intersection of Tradition and Modernity: A Candid Moment at a Cultural Event
  • A Day at the Mediterranean Port: Where Industry Meets Tranquility
  • The Secret Life of Library Cats: Meet Dewey, the Viral Feline Librarian
  • A Slice of 1950s Americana
  • A Lively Afternoon at the Corner Café
  • DeepL launches new French and Spanish AI writing assistant to improve business communications
  • Exclusive.org: Elevate Your Digital Presence with Exclusive Domains
  • Capturing a Moment in the Sunlit Streets
  • Netflix’s Ripley: Diversity for the sake of diversity
  • Celestial Conundrums: Exploring the Enigmatic Mysteries of the Universe

Media Partners

  • 3V.org: PR/Media Agency
  • Media Partners
MIRIDIH Raises $15M in Series B
Sponsored Post
The Evolution of Press Release Distribution: Embracing Non-Traditional Channels
Contact
DefenseMarket.com Embraces Blockchain Technology for Enhanced Security and Transparency
Photo Contests as a Powerful Marketing Tool with Huge Storytelling Appeal
Andy Murray: A Legacy of Tenacity and Triumph in Tennis
Keir Starmer's Labour Party Achieves Historic Victory in UK General Election
Bahrain International Airshow 2024 Registration Now Live
About
API Coding
Calendarial
Syndicator
ZGM
tography
Photo Contest
DN4B
VPNW
3v
Opinion

Media Partners

  • ZGM.org: Zeitgeist Generative Media
  • MSL.net: Media Sharing Lab
Evolution of Clean: Conceptualizing the AI-Powered Vacuum Cleaner
The News Redefined: How Generative Media is Reshaping Reporting, Consumption, and Public Perception
Cashing In: Mastering the Art of Side Hustles and the Gig Economy
How Side Hustlers are Leveraging Generative AI To Outsmart Competition
The Enigma Chronicles: Whispers of the Ether
Embracing Generative AI: A Paradigm Shift in Career Dynamics - HR Expert's Perspective
Cultural Appropriation vs. Appreciation: Navigating the Fine Line
Exploring Market Dynamics: A Multifaceted Analysis Digest
Media Partners
Exclusive.org Launches to Provide Premier Access to High-Value Opportunities
Sony Electronics has launched the ZV-E10 II, camera designed specifically for vloggers
We stand with Israel
Video Game Voice Actors Authorize Strike, Ahead of Contract Negotiations
Building a Successful Media Career
Synths, Nostalgia, and the Future That Never Was: Exploring Retrofuturism in Music
The Heated Debate Over Immigration Policies in the U.S.
DN4B.com Event: Unleashing Digital Potential
Underground Comic Book Scenes: Spotlighting Lesser-Known Creators and Their Alternative Contributions
mSL Scripts: Still in Use Today
The Evolving Landscape of Cybersecurity Events

Copyright © 2022 PXEF.com