The report, a collaboration between data analysis PYMNTS and LendingClub, said 55% of nearly 3,500 people surveyed said they have limited spending capacity, and 49% are shifting their shopping preferences.
The report said that 66% of those living paycheck to paycheck have slashed spending.
“More consumers who have historically managed their budgets comfortably are feeling the financial strain, which will impact their spending behavior as we head into the holiday shopping season,” said Anuj Nayar, LendingClub’s financial health officer.
The report also revealed that 28% of consumers making more than $200,000 say they are living paycheck to paycheck as well. Some 59% of those living paycheck to paycheck said they found significant increases in their utility bills over the past 12 months while 48% said they were having issues paying for health insurance.
Inflation, some of the highest in decades across the United States and the globe, has caused real wages to decline, according to the U.S. Bureau of Labor Statistics. Real average hourly earnings have fallen 3% from a year ago when compared to rising prices.
The struggle for paychecks to keep up with inflation could have a real effect on holiday spending going into the Christmas season. A report by Salary Finance said that two-thirds of working adults said they are worse off financially than they were in 2021.
Credit card balances are up 15% more in the latest quarter, the biggest increase in two decades.
