Inflation continues to influence American wallets.

Some 64% of U.S. customers (166 million) say they’re residing paycheck to paycheck, in keeping with a brand new survey by LendingClub in partnership with PYMNTS. That quantity is up 3% from final yr.

And it is not simply middle-income People struggling to pay their payments.

Surprisingly, 51% of customers incomes greater than $100,000 stated additionally they lived paycheck to paycheck.

“Whereas the variety of People residing paycheck to paycheck is near the peak we noticed in the course of the pandemic, the causes look like very totally different, because the financial system will not be sheltering in place prefer it was again in 2020,” stated Anuj Nayar, monetary well being officer at LendingClub.

Nayar pointed to inflation and the Fed’s efforts to curb it as a motive for customers’ paycheck-to-paycheck standing, as debt continues to be on the rise.

People stay optimistic

Regardless of the dire information, many paycheck-to-paycheck customers stay optimistic that issues will flip round for them. Based on the survey, 4 out of 10 anticipate their cash state of affairs to enhance subsequent yr — up 7 proportion factors from 33% in July 2022.

Why the optimistic vibes? Paycheck-to-paycheck customers consider that promotions and facet hustles will assist them make more cash within the coming yr.

However Nayar expressed concern that this type of magical pondering may gradual financial restoration.

“If the buyer notion that their incomes will enhance this yr is confirmed true, it should hamper the consequences of the Fed to curb inflationary pressures,” stated Nayar. “We are able to anticipate increasingly more People of all incomes figuring out themselves as residing paycheck to paycheck till we see the financial system get well. Now greater than ever, it’s essential for customers to look at spending and construct a cushion of financial savings to arrange for the surprising.”

Most People agree, shying away from shopping for big-ticket gadgets in 2023. Many within the survey stated they would not buy costly OLED TVs and Sensible fridges this yr. Additionally they anticipate to take fewer holidays. Solely 35% of customers stated they might journey for pleasure in 2023.