Americans Cut Paycheck-to-Paycheck Living to Five-Year Low Yet Anxiety Over Economy Holds Steady

The share of Americans reporting that they are living paycheck to paycheck has sharply plunged over the last year.

The figure now stands at 48% after a 21-point plunge from the record high of 69% the prior year, marking the lowest level in four years, according to Debt.com.

The survey polled about 1,000 Americans and asked them about their budgeting and spending habits. Says Debt.com,

“But context matters. Nearly half of all respondents are still financially stretched, a number that would have seemed alarming a few years ago. The improvement is real, but it’s not a reason to stop paying attention.”

The study also shows that 95.15% of Americans say rising costs and inflation have elevated the need for careful money management above all else. The figure is unchanged on a year-over-year basis, suggesting that “even people who are doing better financially haven’t concluded that the pressure is over.”

Meanwhile, 85% of adults keep a budget in place, and 88% of budgeters credit the practice with helping them dodge or escape debt entirely.

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