Paycheck-to-Paycheck Living Reaches Four-Year High in U.S., Debt.com Survey Reveals

The financial stability of American households is under increasing pressure, as evidenced by a recent survey from Debt.com, which found that 69% of U.S. adults are now living paycheck to paycheck. This figure represents the highest rate recorded since the survey's inception, marking a significant increase from 60% in the previous year. The survey, which polled 1,000 U.S. adults, also noted a decline in the percentage of Americans maintaining a monthly budget, dropping from 90% in 2024 to 86% in 2025. This downturn in budgeting participation is the first observed since 2018, raising alarms among financial experts about the potential for a broader economic downturn.

Don Silvestri, President of Debt.com, emphasized the gravity of the situation, stating, 'Budgeting remains vital—but it’s clear it’s no longer enough.' He further expressed concern over the decline in budgeting, suggesting it could indicate not just individual financial strain but early warning signs of a larger economic crisis. The survey also uncovered gender disparities in financial management, with 72% of women reporting paycheck-to-paycheck living compared to 65% of men. Additionally, women were more likely to cite low income as a barrier to budgeting, while men were more prone to view budgeting as too time-consuming.

The findings underscore the need for enhanced financial tools and support systems to aid Americans in navigating the current economic landscape. Silvestri called for collective action from consumers, policymakers, and employers to address the growing financial challenges facing the nation. As the data reveals a troubling trend toward decreased financial preparedness and increased vulnerability to economic shocks, the call for comprehensive solutions has never been more urgent.