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This commonly cited ”survey” sponsored by LendingClub includes so many things in “paycheck to paycheck” that it devalues the spirit of the word entirely. Do yo

This commonly cited ”survey” sponsored by LendingClub includes so many things in “paycheck to paycheck” that it devalues the spirit of the word entirely. Do you use a credit card to pay for your goods, even if you have auto-pay on and pay it off easily each month? You’re now living paycheck to paycheck, according to these folks. And because of that you should check out our fantastic offers over at LendingClub! If you take a look at their somewhat-less-weakened definition of the term, “living paycheck to paycheck with difficulty”, the number is ~20%.

dixie_land 4y ago
I don't see anything wrong with that definition. Can you support all your debt load (mortgage, auto, credit card) for a reasonable period of time ( say a few months ) if you suddenly lose your income this very second? If not, you are by definition living paycheck to paycheck
- gizmo686 4y ago
  I downloaded the report referenced in the article, and it is really bad in quality. Among other complaints, it never defines paycheck-to-paycheck. It does have this nugget: > Job loss and income-related disruptions are the most common fi nancially stressful situa-tion, for instance, with 16% of respondents experiencing this in the last three years . Among paycheck-to-paycheck consumers with issues paying their bills, 30% experienced a job loss and income-related disruption in the last three years compared to 17% of paycheck-to-paycheck consumers without diff i culties and 10% of those not living paycheck to paycheck . Also 26% of paycheck-to-paycheck consumers with issues paying their bills and 15% of paycheck-to- paycheck consumers without diff i culties faced an illness or disability in the household in the past three years . One can conclude that these life-altering events have forced consumers to live paycheck to paycheck . There is a population of paycheck to paycheck people who have lost income, but do not have issues paying their bills.
- everforward 4y ago
  It's problematic because it presumes people using a credit card are doing so because they have to, when there are other valid reasons. E.g. I often use credit cards for purchases I have cash for (and them pay them off), because there are dramatically better protections for credit card purchases than debit card purchases. I also get benefits like cash back or miles which I do not get on my debit card. Using a credit card != couldn't pay with cash.
- sysop073 4y ago
  You said you don't see anything wrong with that definition and then provided a completely unrelated definition
- puffoflogic 4y ago
  By this definition it doesn't matter at all. I could support myself for a decade without work and yet by the credit-card based definition I'm apparently living paycheck to paycheck. Scary!

dixie_land 4y ago

I don't see anything wrong with that definition. Can you support all your debt load (mortgage, auto, credit card) for a reasonable period of time ( say a few months ) if you suddenly lose your income this very second? If not, you are by definition living paycheck to paycheck

gizmo686 4y ago
I downloaded the report referenced in the article, and it is really bad in quality. Among other complaints, it never defines paycheck-to-paycheck. It does have this nugget: > Job loss and income-related disruptions are the most common fi nancially stressful situa-tion, for instance, with 16% of respondents experiencing this in the last three years . Among paycheck-to-paycheck consumers with issues paying their bills, 30% experienced a job loss and income-related disruption in the last three years compared to 17% of paycheck-to-paycheck consumers without diff i culties and 10% of those not living paycheck to paycheck . Also 26% of paycheck-to-paycheck consumers with issues paying their bills and 15% of paycheck-to- paycheck consumers without diff i culties faced an illness or disability in the household in the past three years . One can conclude that these life-altering events have forced consumers to live paycheck to paycheck . There is a population of paycheck to paycheck people who have lost income, but do not have issues paying their bills.
everforward 4y ago
It's problematic because it presumes people using a credit card are doing so because they have to, when there are other valid reasons. E.g. I often use credit cards for purchases I have cash for (and them pay them off), because there are dramatically better protections for credit card purchases than debit card purchases. I also get benefits like cash back or miles which I do not get on my debit card. Using a credit card != couldn't pay with cash.
sysop073 4y ago
You said you don't see anything wrong with that definition and then provided a completely unrelated definition
puffoflogic 4y ago
By this definition it doesn't matter at all. I could support myself for a decade without work and yet by the credit-card based definition I'm apparently living paycheck to paycheck. Scary!