LendingClub Corporation, a lending company, released the results of its 10th edition of “Reality Check: Paycheck-To-Series,” which examines the financial lifestyle of the growing proportion of higher-income American consumers who live from check to check, and the impact on your ability to access credit and other management expenses.
“Earning a quarter of a million dollars a year is more than 5 times the national average and is Clearly a high income. The fact that a third of them live paycheck to paycheck should surprise you,” said Anuj Nayar, Financial Health Officer at LendingClub. “These high-income individuals have an average FICOscore of 758. They are creditworthy but have higher financial obligations and are more likely to leverage their capital to finance their lives.”
Check-for-check consumers fall into two categories: those who can easily pay their bills and those that don’t. Paycheck to Paycheck Report was based on a survey of 4,048 US consumers made from 6 to 13 of April.
Some of the relevant points that the study found:
– The 61% of US consumers lived paycheck to paycheck.
– Percentage of people who lived paycheck to paycheck with no problems paying their bills:
The 35% of consumers earning between $105,000 and $150,000
The 31% you earn between $150,000 and $200,000
The 26% what win between $200,000 Y $250,000
The 24% earning more than $250,
– Percentage of people who lived paycheck to paycheck with problems paying their bills:
Between 10% and the 12% of Highest Income Consumers
The 19% of the middle-income consumers (those earning $ 50, to $100,)
The 36% of low-income consumers (those earning less than $35,000 )
The study indicates that credit products are a tool cash flow management for check-to-check consumers, especially those in the higher income brackets.
Check-to-check consumers tend to t Have higher monthly credit card balances, regardless of your income. However, those who earn more are more likely to pay off their balance in full each month.
The average US consumer uses the 40% of the available limit of your credit card, according to the investigation. This usage is higher than 13% often recommended by credit experts for perceived creditworthiness. With an average credit limit of $7,300, the average American consumer spends $2 ,1095 per month on two credit cards.
“The continuing effects of single inflation on a generation are impacting Americans’ discretionary spending across the board and relying more and more on credit products to fill cash flow gaps,” Nayar added. “As credit card interest rates continue to rise, consider checking out your variable rate credit cards. Many LendingClub members have already refinanced their variable-rate credit card balance into a lower-cost fixed-rate loan to better manage their debt.”
To view the full report, enter here.
FICO Scores, created by the Fair Isaac Corporation (FICO), are the most widely used credit scores in lending decisions.
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