77 Percent of Consumers Plan to Participate in the 2023 Holiday Shopping Season
60 Percent Cite Access to Fewer Resources as Reason to Spend Less Overall
SAN FRANCISCO, Nov. 20, 2023 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, today released key findings from the 28th edition of the Reality Check: Paycheck-To-Paycheck research series, conducted in partnership with PYMNTS Intelligence. The Holiday Shopping Deep Dive Edition examines the financial lifestyles and spending choices of U.S. consumers going into the 2023 holiday shopping season. This edition draws on insights from a survey of 3,640 U.S. consumers conducted from Oct. 3 to Oct. 19 and an analysis of other economic data.
The Paycheck-to-Paycheck Landscape
While the share of consumers living paycheck to paycheck has remained relatively stable in 2023, gloomy perceptions about the economy continue to impact consumer sentiment, with many believing they are worse off now than they were in 2022. Overall, 38% of consumers consider themselves in poorer financial health relative to 2022, and 62% are very or extremely concerned about the economic outlook. Furthermore, a solid majority of Americans (58%) are still seeing inflation exceed growth in their paychecks.
Consumer Spend During the 2023 Holiday Season
Consumers Will Use Various Financing Options
Consumers are also more likely to use a combination of savings and credit rather than one or the other. More than one-third (37%) of consumers will tap into savings to finance holiday spending, with 21% expected to use less than half of their available funds and 16% prepared to use half or more of their savings to help with purchases. The share of consumers planning to use savings jumps to 53% among Generation Z consumers. Moreover, 43% of consumers expect to spend above their typical budgets in November and 60% expect to exceed their budgets in December.
"While consumers have found a way to manage through inflation, it's concerning that many plan to tap into savings, and even exceed their budgets, to finance their holiday purchases, which may leave them vulnerable to an unexpected emergency," said Alia Dudum, LendingClub's Money Expert. "Don't let the allure of instant gratification lead you deeper into credit card debt. Make a conscious choice to spend wisely, prioritize essentials, and create a budget that shields you from January's financial hangover, especially in a high interest rate environment."
To view the full report, visit: https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-holiday-shopping-credit-financing/
New Reality Check: The Paycheck-to-Paycheck Report, a PYMNTS Intelligence and LendingClub collaboration is based on a census-balanced survey of 3,640 U.S. consumers conducted from Oct. 3 to Oct. 19 as well as an analysis of other economic data. The data in this report is not intended to be a representation of LendingClub's core member base. The Paycheck-to-Paycheck series expands on existing data published by government agencies, such as the Federal Reserve and the Bureau of Labor Statistics, to provide a deep look into the core elements of American consumers' financial wellness: income, savings, debt and spending choices. Our sample was balanced to match the U.S. adult population in a set of key demographic variables: 51% of respondents identified as female, 33% were college-educated and 39% declared incomes of more than $100,000 per year.
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $90 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.7 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.
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SOURCE LendingClub Corporation
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