Can you say “live within your means,” your real means, not the credit means. Nearly everyone who claims to live paycheck to paycheck, has a spending problem as much, if not more, than an earning problem.
As of April, 61% of consumers said they are now living paycheck to paycheck, according to a LendingClub report. Even top earners are stretched thin, the report found. Of those earning $250,000 or more, 36% said they live paycheck to paycheck.
“Earning a quarter of a million dollars a year is more than five times the national median and is clearly high income,” said Anuj Nayar, LendingClub’s financial health officer. “The fact that a third of them are living paycheck to paycheck should surprise you.
“These high-income earners have an average FICO score of 758,” Nayar added. “They are creditworthy but they have higher financial obligations and are more likely to leverage their capital to finance their lives.” Consumers who are struggling to afford their day-to-day lifestyle tend to rely more on credit cards and carry higher monthly balances making them financially vulnerable, the survey said.