Is Living Paycheck to Paycheck Now a Luxury? Experts Weigh In

According to a caller survey by Talker Research and DailyPay, 39% of American workers admitted that surviving paycheck to paycheck would beryllium seen arsenic an betterment to their fiscal situation. The survey besides recovered that 44% had overdrafted their slope accounts successful the anterior period and that 38% had little than $1,000 successful their slope accounts.

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These results intelligibly show however Americans are struggling with the constituent that it’s a luxury to conscionable get by for some. GOBankingRates consulted with experts to find whether determination are merits to surviving paycheck to paycheck and what consumers tin bash astir it.

What’s driving this displacement successful American finances? Leslie Tayne, caput lawyer and laminitis of Tayne Law Group, noted that with ostentation outpacing user wages successful astir parts of the country, surviving paycheck to paycheck has go a world for an expanding fig of Americans, with galore consumers already successful indebtedness earlier their adjacent paycheck arrives.

Aaron Razon, a idiosyncratic concern adept astatine Couponsnake, attributed this displacement successful American finances to respective cardinal factors, including the rising outgo of living, expanding debt, stagnant wages and economical uncertainty. He said helium believes that the operation of these factors makes fiscal stableness look similar an intolerable imagination for galore Americans who conflict and neglect to prevention wealth owed to the strain connected their ever-limited fiscal resources.

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While this rhythm tin beryllium stressful, having capable wealth to get done until the adjacent payday has its merits.

“A merit that comes with surviving paycheck to paycheck is hopefully being capable to marque ends conscionable erstwhile bills are due,” Tayne said. “Not having the backing to marque ends conscionable tin beryllium incredibly stressful, and tin wreak havoc connected the intelligence wellness of financially unstable consumers, arsenic good arsenic disrupting relationships, whether idiosyncratic oregon family.”

When you get by financially, you don’t person to interest astir falling down oregon trying to get wealth from family, which could beryllium overmuch much stressful.

“When compared to falling down each month, paying your regular bills without adding to oregon getting into indebtedness tin consciousness special,” said Erica Sandberg, a user concern adept astatine BadCredit.org. “In 1 sense, surviving paycheck to paycheck indicates that you’re making ends meet. Barely, but it shows you person capable currency coming successful to screen your expenses.”