Majority of U.S. Adults Living Paycheck to Paycheck

The majority of U.S. adults are living paycheck to paycheck heading into this holiday season, a report shows.

LendingClub’s latest report shows that as of October, 60 percent of adults said they are living paycheck to paycheck. Around 40 percent of consumers consider themselves to be worse off now than in 2022. 

Even higher earners are struggling to get by, with 42 percent of those making six figures also living check-to-check under President Joe Biden.

According to a separate CNBC survey, the number of adults struggling to save between checks is up from 58 percent in March.

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More than a third of consumers are planning to dip into their savings to cover holiday spending, LendingClub also found.

“While consumers have found a way to manage through inflation, it’s concerning that many plan to tap into savings, and even exceed their budgets, to finance their holiday purchases, which may leave them vulnerable to an unexpected emergency,” said Alia Dudum, LendingClub’s money expert.

The LendingClub report also revealed 43 percent of consumers who are living paycheck to paycheck and “struggling to pay bills” are planning to use credit for holiday shopping.

Consumers are steadily adopting the “mentality of hyper-consumption,” said Jacqueline Howard, head of money wellness at Ally financial services.

“Hyper-consumption comes from not being mindful,” she added. “Consider what makes the most sense in terms of your well-being.”

Even as credit card debt tops $1 trillion, nearly all shoppers will overspend their holiday budget, a TD Bank survey found. 


The report, released last week, revealed that 96 percent of over 2,000 responding shoppers said they expect to overspend this season.

“With economic concerns top of mind for consumers throughout the year, planning ahead can help prevent some of the financial stress that holiday shopping can place on them,” said Matt Boss, Head of Consumer Products at TD Bank. “Setting a holiday budget and sticking to it is the first step that shoppers can take to maintain their peace of mind this holiday season.”

The survey also found that members of Generation Z are “among the best budgeters of all this holiday season,” with 81 percent of Gen-Zers saying they are considering making a holiday budget this year to keep track of their finances, compared to 77 percent of Millennials and just 59 percent of Baby Boomers. 

“Gen-Z is also the most likely to plan for their season of giving, with [66 percent] citing that they set aside money year-round in anticipation of increased holiday spending,” the report added.

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