LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today released key findings from the 27th edition of the Reality Check: Paycheck-To-Paycheck research series, conducted in partnership with PYMNTS Intelligence. The Savings Deep Dive Edition examines consumers’ ability to preserve their savings in the current economic environment, especially when faced with major expenditures. This edition draws on insights from a survey of 3,648 U.S. consumers conducted from Sept. 5 to Sept. 20 and an analysis of other economic data.
The Paycheck-to-Paycheck Landscape
Living paycheck to paycheck remains the main financial lifestyle among U.S. consumers. As of September 2023, 62% of consumers lived paycheck to paycheck, unchanged from a year prior. Seventy-nine percent of consumers earning less than $50,000 yearly live paycheck to paycheck, as well as 68% and 44% of middle- and high-income consumers, respectively. Moreover, over one-fifth of U.S. consumers reported struggling to pay their bills — nearly 3 percentage points higher than this time last year. The share of consumers living paycheck to paycheck without issues paying monthly bills is 41%, down from 43% last year, while the share of those not living paycheck to paycheck has remained the same at 38%.
Consumer Savings Capacity
Aggregate consumer savings amounted to an average of $11,000 per consumer in September 2023, roughly unchanged from a year ago. Overall, 44% of consumers reported diminished savings capacity relative to a year ago, with 50% of those earning less than $50,000 yearly reporting such changes. Conversely, at 35%, consumers earning more than $200,000 annually are the most likely among income brackets to cite increased savings ability. Across groups, more than one-third of consumers are optimistic regarding increasing their savings capacity in the year to come — an indication that consumers expect to tighten their…
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