In the midst of rampant inflation, even high earners in the U.S. are living paycheck to paycheck, and many Americans are ruining their credit scores to keep up with their lifestyles, according to a new report.
Among Americans earning $250,000 or more, 30% were living paycheck to paycheck as of May, CNBC writes, citing a recent report from peer-to-peer lending company LendingClub.
That’s down from 36% who were in that situation in April, however, Pymnts says it found in a survey of 4,048 U.S. consumers conducted with LendingClub from April 6 to April 13.
"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, according to CNBC.
Americans are tapping their credit cards, taking on higher monthly balances, the news network writes, citing the survey. Credit card balances reached $841 billion in the first three months of 2020, the news network writes, citing a separate report from the Federal Reserve Bank of New York.
Pymnts, which provides news and analysis in payments, retail, fintech, financial services and the digital economy, says that its April survey shows that 18% of those earning $250,000 or more had an average credit score and 13% a below-average score.
As of May, 58% of Americans overall were living paycheck to paycheck, down from 61% in April but up from 54% in May last year, CNBC writes.
The consumer price index in May was 8.6% higher from May last year, representing the biggest increase since December 1981, according to the news network.
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