64% of the population is living paycheck-to-paycheck

With inflation showing NO signs of slowing down, the number of people barely getting by will only continue to increase.

Much the same ;can be said about our government. If some actions aren't taken to reduce our National Debt, the day WILL come when the dollar is worth about the same as the Russian Ruble.
 

RadishRose said:
64% of the population is living paycheck-to-paycheck.

How does anyone know that? Was it a survey? How many people were asked? By whom?

I have seen articles on the Internet exclaiming something like "85% of Americans believe in Santa Claus".... when you read the article you find only 2500 people were surveyed. Out of billions.
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I hear you, RadishRose. Aren't those millions of surveys out there wonderful? I don't think so! China produces so much while all we seem to be doing here in Canada is doing those bloody surveys. I don't know if 85% of Americans believe in Santa Claus but I know every Christmas there is a lot of BS on the evening of December 24th about the US Armed Forces tracking Santa Claus on their radars. Like I say, it's a "dumb and dumber" society and it's getting still dumber. My goodness! What every happened to education? I hope there is still some hope for the world but after seeing what Putin is doing I really have my doubts.
 
RadishRose said:
64% of the population is living paycheck-to-paycheck.

How does anyone know that? Was it a survey? How many people were asked? By whom?

I have seen articles on the Internet exclaiming something like "85% of Americans believe in Santa Claus".... when you read the article you find only 2500 people were surveyed. Out of billi
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Aunt Bea said:
This is the article that I saw.

https://www.cnbc.com/2022/03/08/as-...t-of-americans-live-paycheck-to-paycheck.html
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T Y, AB, for "backing me up" with posting that article!
 
RadishRose said:
I dunno AB, this article says-

Methodology
The New Reality Check: The Paycheck-To-Paycheck Report is based on a census-balanced survey of 2,633 complete responses from U.S. consumers conducted from Jan. 11 to Jan. 18, 2022, as well as an analysis of other economic data.

Well, I'm sure they did their best, but I'm not sure of these kinds of surveys. Thanks for the info.
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Bingo! 2,633 people surveyed when the US adult population is roughly 260 million? Talk about a small sample. What's the definition of living month to month anyway? No extra money anywhere? No safety nets? A missed month and you're living on the street?

A fuller picture:

A lot of people live "month to month" with few liquid savings during various points in our lives. Did this study consider money tied up in in 401Ks, IRAs, Roths and other accounts people keep out of reach for ongoing expenses?

What about other assets, including home equity? Roughly 65% of Americans live in owner-occupied dwellings, and 34% of our homes are mortgage-free. Some living there may be relatives of the homeowner - elderly parents or children who've yet to launch - but their housing is nevertheless stable, so in reality their "paycheck to paycheck" scenario is a whole lot less dire than it seems.

(This rate of home ownership has remained between 63% & 69% for the past 57 years, which is how long the stats have been available.)
https://tradingeconomics.com/united-states/home-ownership-rate

Studies like this show shocking headlines but the truth is a often much more reassuring than dire. But nobody clicks on those stories.

Of course I realize some Americans literally do live month to month without an extra penny anywhere, but in the US that's the exception, not the rule - and definitely not the reality for 64% of the population. 48% of the population with income over $100K living paycheck to paycheck with no safety nets beneath them is even more unlikely.
 
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Jace, there was a time when that was me. I was in my 20's and nicknamed that me "Poor Girl". But I starting learning very good financial habits during that time and have maintained them even after my finances greatly improved. Now my basic expenses take up less than half of my monthly income as a retiree and there's enough in my savings and checking accounts to live off for life (considering my income). Although I don't consider myself rich by any means, I may be in better shape than some who are rich. Like @Aunt Bea posted...many of them are stretched thin too according to statistics. I also have a healthy investment portfolio that I don't anticipate having to touch unless, God forbid, there's a catastrophic illness or event.
 
Could be living paycheck to paycheck and juggling debt. Only one life to live, so got to have fun.

"The average American has a credit card balance of $5,525.

Although that's a large amount, it has been dropping over the last two years. The average balance was $6,629 in 2019 and $5,897 in 2020. That data comes from Experian and its yearly State of Credit reports.

Generation X carries the highest average credit card balance at $7,236. That's over $1,000 more than baby boomers, who came in second with an average balance of $6,230.

The lowest average credit card debt by age was Generation Z with $2,312. Since young adults have lower incomes on average, they also have a lower average credit limit, which at least helps with avoiding credit card debt."

https://www.fool.com/the-ascent/research/credit-card-debt-statistics/
 

Average UK credit card debt per household​


Following along with total credit card debt, the average credit card debt per household stood at £2,033 in August 2021. This is a healthy decline from the beginning of 2020 when average household credit card debt stood at £2,592. Again, this drop is likely a direct result of the economic impact of Covid-19. That’s because the pandemic significantly limited what cardholders could spend their money on.

  • Total credit card debt in the UK was £56.5 billion in August 2021. This is far less than the £72.1 billion reported in 2020.
  • Average credit card debt per household was £2,033 as of August 2021. That figure represents an average of £1,068 per adult.
  • In November 2021, the average representative rate on credit cards was around 21% according to the Bank of England. The figure is a sharp rise from the 18.67% reported at the beginning of 2019.
  • In Q2 of 2021, bank write-offs of loans stood at £958 million, of which £366 million was credit card debt. This means banks wrote off £4 million of debt each day.
  • Household debt of all types is forecast to rise from £2,006 billion to £2,345 billion by 2025.
 
hollydolly said:

Average UK credit card debt per household​


Following along with total credit card debt, the average credit card debt per household stood at £2,033 in August 2021. This is a healthy decline from the beginning of 2020 when average household credit card debt stood at £2,592. Again, this drop is likely a direct result of the economic impact of Covid-19. That’s because the pandemic significantly limited what cardholders could spend their money on.

  • Total credit card debt in the UK was £56.5 billion in August 2021. This is far less than the £72.1 billion reported in 2020.
  • Average credit card debt per household was £2,033 as of August 2021. That figure represents an average of £1,068 per adult.
  • In November 2021, the average representative rate on credit cards was around 21% according to the Bank of England. The figure is a sharp rise from the 18.67% reported at the beginning of 2019.
  • In Q2 of 2021, bank write-offs of loans stood at £958 million, of which £366 million was credit card debt. This means banks wrote off £4 million of debt each day.
  • Household debt of all types is forecast to rise from £2,006 billion to £2,345 billion by 2025.
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Would you please post those figures in U.S. dollars? Thank you. 🤑
 
I think everything is stacked against the younger generation, they have to pay (after adjusting for inflation over the years) 250% of what we had to pay for college. And when I graduated employers trained new hires, I remember talking to an IBM recruiter when I was young and she said they had particular success hiring music majors and training them to do programming. Nowadays young people have to go in debt to get the training in school because big corp America doesn't want to spend anything on employees.

And credit cards, when my daughter turned 21 our mailbox was deluged with predatory credit card offers. Luckily she was away at college so I threw them all away without her seeing them, but I was shocked by seductive sounding offers and the truly awful fine print.
 
OneEyedDiva said:
Would you please post those figures in U.S. dollars? Thank you. 🤑
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you asked you shall be given, never let it be said..that I don't give you anything... 😜


  • Total credit card debt in the UK was £56.5 billion in August 2021 = ( $ 73 Billion, 667 million, 468,500 USD) . This is far less than the £72.1 billion = ( $ 94 Billion, 7 Million, 512,900 USD) reported in 2020.
  • Average credit card debt per household was £2,033 = ( $3379 USD) as of August 2021. That figure represents an average of £1,068 = ( $1,392 US ) per adult.
  • In November 2021, the average representative rate on credit cards was around 21% according to the Bank of England. The figure is a sharp rise from the 18.67% reported at the beginning of 2019.
  • In Q2 of 2021, bank write-offs of loans stood at £958 million, = ( $1 Billion, 249 million..87 thousand , 242 dollars USD) of which £366 million = ($ 477 million, 208,734 USD) was credit card debt. This means banks wrote off £4 million of debt each day.= ( $5 million, 215,396 USD)
  • Household debt of all types is forecast to rise from £2,006 billion = to £2,345 billion by 2025.
 
hollydolly said:
you asked you shall be given, never let it be said..that I don't give you anything... 😜


  • Total credit card debt in the UK was £56.5 billion in August 2021 = ( $ 73 Billion, 667 million, 468,500 USD) . This is far less than the £72.1 billion = ( $ 94 Billion, 7 Million, 512,900 USD) reported in 2020.
  • Average credit card debt per household was £2,033 = ( $3379 USD) as of August 2021. That figure represents an average of £1,068 = ( $1,392 US ) per adult.
  • In November 2021, the average representative rate on credit cards was around 21% according to the Bank of England. The figure is a sharp rise from the 18.67% reported at the beginning of 2019.
  • In Q2 of 2021, bank write-offs of loans stood at £958 million, = ( $1 Billion, 249 million..87 thousand , 242 dollars USD) of which £366 million = ($ 477 million, 208,734 USD) was credit card debt. This means banks wrote off £4 million of debt each day.= ( $5 million, 215,396 USD)
  • Household debt of all types is forecast to rise from £2,006 billion = to £2,345 billion by 2025.
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"never let it be said..that I don't give you anything.." I know you wouldn't treat me mean like that HD. :D Thank you again❣️
 
C50 said:
I have to wonder how many of those paycheck to paycheck households are self created. So many people live beyond their means, fancy phones and plans, cable/internet, huge homes, dinners out often, credit card debt, etc. So much can be avoided.
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I know some people who are in that category yet they don't listen to prudent advice about how to improve their circumstances. 😒
 
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The subject is really about the accepted American culture of going into debt. IMO for most people's situations, living week to week is stupid. Most people on many matters act like sheep following others instead of thinking too deeply for themselves. And that works right into the interests of banks and other financial institutions. For young twentysomethings coming of age, they are pounded with advertisement to buy material goods from vehicles to myriad appliances filling homes. The same now as when I came of age in the 1970s. Almost every acquaintance I had as well as relatives bought into that narrative. Why not buy via loans now what you desire instead of waiting? Look, everyone does that so going into debt must be ok...isn't it?

This person is one of the few peons that began with just lugging a duffle bag on busses, so not even a car, after a USAF HD, that has never been in debt...EVER. I walked a half mile to work in Silicon Valley my first several months to make $2.83/hr as a junior electronic tech. Although being in debt can work well, the world has land mines that have a way of eventually blowing up from a list of unexpected missteps. And have seen plenty of others fall into the abyss. The most common is losing one's job, especially during economic downturns when one's income may end for unknown periods, putting not a few into disaster. And of course employers understand that stressful leverage they have over their employees. Over the decades, that also allowed me to request understandings before being hired about issues like rarely working overtime or on weekends without usual stressful threats of being fired.

I, admittedly am not much of a materialist, thought why not live cheaply frugally for a few years, till I could pay for whatever with cash and have enough savings in a bank that would cushion stepping on unseen land mines.
 
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This percent rating has put my brain into the spin cycle. About the first half of my working life, I was living paycheck to paycheck. I started working at 18 and retired at 68 so that was 50 years. So, when I was 18 to about 43 years old, I was living paycheck to paycheck. The from 43 to 68 I was able to save money and build up a nest egg. So, this figure of 64 percent at the current time has put my brain in a spin. If 64 percent of people bring in enough money to survive what about the remainder of the 36 percent? There are the people that are not able to live paycheck and so must live in poverty and there are people who are above the ability to live to live paycheck to paycheck and be rich. What is the percentage of people that are living in poverty now and the percent of people who can be considered rich? If I use the golden ratio, I figure there is possibly twice as many in poverty than there are rich people. Which could foretell that possible 24 percent of people live in poverty and 12 percent of people who are rich.
 
Lawrence said:
This percent rating has put my brain into the spin cycle. About the first half of my working life, I was living paycheck to paycheck. I started working at 18 and retired at 68 so that was 50 years. So, when I was 18 to about 43 years old, I was living paycheck to paycheck. The from 43 to 68 I was able to save money and build up a nest egg. So, this figure of 64 percent at the current time has put my brain in a spin. If 64 percent of people bring in enough money to survive what about the remainder of the 36 percent? There are the people that are not able to live paycheck and so must live in poverty and there are people who are above the ability to live to live paycheck to paycheck and be rich. What is the percentage of people that are living in poverty now and the percent of people who can be considered rich? If I use the golden ratio, I figure there is possibly twice as many in poverty than there are rich people. Which could foretell that possible 24 percent of people live in poverty and 12 percent of people who are rich.
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64% is almost certainly a gross exaggeration. See my post (#30) above.
 
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