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Why so many people live paycheck to paycheck, even high earners
In 2025, 14% of U.S. consumers risk missing debt payments as lifestyle creep and rising fixed costs drive financial stress despite higher incomes.
- In 2025, Americans earning $100,000 increasingly report debt anxiety and paycheck-to-paycheck living, with the highest share bracing for delinquency since April 2020, Federal Reserve 2024 survey found.
- Lifestyle creep and consumer drivers push spending higher alongside income, while targeted advertising, social media, and credit access accelerate habits and rising fixed costs increase mortgages and vehicle expenses.
- BEA data shows Americans saved just 3.8% of disposable income in December 2024, while housing cost guideline is near 30% and vehicle cost guideline near 35%, stressing budgets with rent or mortgage payments.
- Higher fixed costs and debt leave higher-income households vulnerable as layoffs and economic uncertainty increase the risk of missed payments and personal loans reduce saving ability.
- Long-Term lessons show financial planners and advisers emphasize spending, saving and debt management matter more than income, as higher earners face lifestyle creep and rising fixed costs.
Insights by Ground AI
17 Articles
17 Articles
Coverage Details
Total News Sources17
Leaning Left3Leaning Right1Center13Last UpdatedBias Distribution76% Center
Bias Distribution
- 76% of the sources are Center
76% Center
L 18%
C 76%
Factuality
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