60% of Adults Living Paycheck to Paycheck, Federal Reserve Report Reveals Lowest Ability to Cover $2,000 Expense in a Decade, as Disposable Incomes Decline

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As the holiday season approaches, a recent LendingClub report reveals that 60% of adults are grappling with the harsh reality of living paycheck to paycheck. Despite this financial strain, consumers are gearing up to overspend during the festive season, marking a concerning trend of “hyper-consumption.”

More Americans have experienced a decline in disposable income in 2022 than in any of the preceding seven years. This financial squeeze adds stress during a time traditionally associated with increased spending.

In a breaking development, the Federal Reserve Bank of New York reports that the ability of US households to cover an unexpected $2,000 expense is now at its lowest level in a decade. This alarming revelation intensifies concerns in an already challenging financial landscape.

The rising cost of living compounds the issue, with even basic necessities like groceries becoming comparable to a second mortgage. The financial strain is palpable, impacting individuals and families as they navigate the holiday season under the weight of economic challenges.

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