(TheLastPatriotNews.com) – Exposing the regrettable financial situation of US households on President Joe Biden’s watch, a new report reveals that most American adults are living paycheck to paycheck as the holiday season is about to begin – and almost half say they are worse off than a year back.
As of October, 60% of adults find themselves in this precarious financial situation, according to a recent report by LendingClub.
The report also highlights that about 40% of consumers feel they are in a worse financial position now compared to 2022, Breitbart News reports.
The financial strain is not limited to lower-income groups; it extends to higher earners as well, with 42% of individuals earning six-figure incomes also living paycheck to paycheck under President Joe Biden’s administration.
A separate survey by CNBC shows a slight increase in this trend, with the percentage of adults struggling to save between paychecks rising from 58% in March.
Alia Dudum, LendingClub’s money expert, expressed concern about how consumers handled inflation.
“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,” she noted.
The LendingClub report further reveals that 43% of consumers who are living paycheck to paycheck and “struggling to pay bills” intend to use credit for their holiday shopping.
This trend is part of a broader shift towards what Jacqueline Howard, head of money wellness at Ally financial services, describes as a “mentality of hyper-consumption.”
“Hyper-consumption comes from not being mindful. Consider what makes the most sense in terms of your well-being,” Howard cautioned.
Despite the surge in credit card debt surpassing $1 trillion, a TD Bank survey found that nearly all shoppers are likely to exceed their holiday budgets.
The survey, which included responses from over 2,000 shoppers and was released last week, revealed that 96% expect to overspend this season.
Matt Boss, Head of Consumer Products at TD Bank, suggested careful planning could alleviate the financial pressure associated with holiday shopping.
The survey also indicated a generational difference in budgeting habits, with members of Generation Z emerging as particularly prudent.
According to the report, 81% of Gen Zers are considering creating a holiday budget this year to manage their finances, in contrast to 77% of Millennials and only 59% of Baby Boomers.