The share of consumers living paycheck to paycheck increased by 4 percentage points between May 2021 and May 2022, according to “The New Reality Check,” a PYMNTS and LendingClub collaboration based on a survey of 3,708 consumers.
Get the report: The New Reality Check
Fifty-eight percent of consumers were living paycheck to paycheck in May 2022, up from 54% in May 2021.
The lower the income bracket, the more likely consumers are to be living paycheck to paycheck in May 2022.
The income bracket most likely to be living paycheck to paycheck includes those with incomes of less than $50,000 a year. Of those in that income range, 77% live paycheck to paycheck.
In the other two income brackets defined in the report, 62% of consumers with incomes between $50,000 and $100,000 live paycheck to paycheck, as do 36% of those with incomes of more than $100,000.
These groups’ propensity to live paycheck to paycheck has changed over the past year. Those in the two lower income brackets are more likely to live paycheck to paycheck, while those in the highest are less likely.
The share of those with incomes of less than $50,000 a year who are living paycheck to paycheck has risen from 72% in May 2021 to 77% in May 2022.
Among those with incomes between $50,000 and $100,000, the share has grown from 53% in May 2021 to 62% in May 2022.
On the other hand, among those earning more than $100,000, the share living paycheck to paycheck has dipped from 39% in May 2021 to 36% in May 2022.
PYMNTS research finds that paycheck-to-paycheck consumers fall into two categories: those who can pay their monthly bills easily and those who struggle to do so.
In May 2022, 39% of consumers were living paycheck to paycheck without difficulties paying monthly bills, while 19% were living paycheck to paycheck with issues paying their bills.
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