The Blubber

A third of Americans earning $150,000 a year or more say they're living paycheck to paycheck and many rely on credit cards to close the gap, per Moneywise.

The use of credit cards has been on the rise, driven by the challenges posed by high inflation.

In fact, as reported by the New York Fed, credit card balances surged past the $1 trillion mark during the second quarter of 2023.

With some individuals finding themselves awaiting their next paycheck to cover daily expenses, credit cards may be their sole remaining financial option. However, overreliance on credit cards carries its own set of consequences.

According to the Quicken survey, 46% of individuals in higher income brackets now rely more heavily on their credit cards than ever before, in contrast to 40% in middle-income and 39% in lower-income groups. Additionally, approximately one-third of those earning $150,000 or more annually acknowledged that they wouldn't be able to settle their credit card balances before the year's end.

Information gathered in a June survey conducted by the personal finance software firm Quicken indicates that 32% of individuals in the United States with annual incomes of at least $150,000 are presently experiencing a situation where they rely on each paycheck to cover their expenses. In comparison, 36% of those earning between $50,000 and $150,000 annually and 55% of households earning less than that income threshold reported being in a similar paycheck-to-paycheck financial position.