LendingClub Corporation, the parent company of LendingClub Bank, America’s leading digital marketplace bank, today released findings from the 20th edition of the Reality Check: Paycheck-to-Paycheck research series, conducted in partnership with PYMNTS. The Supplemental Income Edition examines how U.S. consumers are turning to alternative sources of income to supplement what they receive from regular full-time employment to improve their financial standing.
Sixty-two percent of adult U.S. consumers live paycheck to paycheck as of February 2023. Although this represents a slight rise from 60% in January, year-over-year the share of consumers living paycheck to paycheck has remained steady.
When looking at the two categories of paycheck-to-paycheck consumers — those who can pay their monthly bills without difficulty and those who struggle to do so — the data shows recent shifts in financial lifestyle that indicate consumers have adjusted to inflationary pressures, finding ways to better manage their cash flows. For example, fewer consumers overall reported struggling to pay bills in February 2023. Moreover, fewer low-income consumers report living paycheck to paycheck with issues paying their bills than did so one year ago, and the share of those living without difficulty has increased slightly.
“While consumers have adjusted to inflationary pressures by budgeting and spending less, many have turned to supplemental income with a side job or alternative income sources to improve their financial standing,” said Anuj Nayar, Financial Health Officer at LendingClub. “A vast majority of consumers became used to working from home during the pandemic, and after returning to work, many kept flexible hours and turned to alternative income streams to expand their earning potential beyond a 9-to-5 job.”
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