Consumers are still spending despite increasing prices, but less than they were a year ago, which gives their budgets some breathing room.
According to a recent LendingClub research, 45% of high-income earners and 60% of all U.S. individuals were living paycheck to paycheck as of January. This has decreased from 64% a year ago, indicating that some customers' financial situations have improved as a result of last year's spending restraints.
Consumers are actively changing their behavior to adjust their spending and better manage their cash flow, especially during the holiday shopping season in 2022, according to Anuj Nayar, financial health officer at LendingClub. "Consumers have accepted that inflation is part of their everyday lives," he said.
Yet, the most recent inflation data from the core personal consumer expenditures index from last Friday was higher than anticipated, demonstrating that some spending patterns are difficult to change. Compared to the projection of 1.4%, consumer expenditure increased by 1.8% for the month.
According to a different Bankrate.com research, nearly half, or 46%, of credit card users now carry debt from month to month on at least one card, up from 39% last year.
According to Ted Rossman, senior industry analyst at Bankrate, "spending some of your tax refund money to pay down this high-cost debt would be a smart choice" if you have credit card debt, which more than a third of Americans do.
According to a recent LendingClub research, 45% of high-income earners and 60% of all U.S. individuals were living paycheck to paycheck as of January. This has decreased from 64% a year ago, indicating that some customers' financial situations have improved as a result of last year's spending restraints.
Consumers are actively changing their behavior to adjust their spending and better manage their cash flow, especially during the holiday shopping season in 2022, according to Anuj Nayar, financial health officer at LendingClub. "Consumers have accepted that inflation is part of their everyday lives," he said.
Yet, the most recent inflation data from the core personal consumer expenditures index from last Friday was higher than anticipated, demonstrating that some spending patterns are difficult to change. Compared to the projection of 1.4%, consumer expenditure increased by 1.8% for the month.
According to a different Bankrate.com research, nearly half, or 46%, of credit card users now carry debt from month to month on at least one card, up from 39% last year.
According to Ted Rossman, senior industry analyst at Bankrate, "spending some of your tax refund money to pay down this high-cost debt would be a smart choice" if you have credit card debt, which more than a third of Americans do.