Living expenses can add up fast. If you’re having trouble staying in the black, you’re not alone.
One-quarter — 26% — of consumers are struggling to pay the bills, according to a recent PYMNTS study. Keep reading to learn the five types of people having trouble staying financially afloat, as this might hit close to home.
Households Earning Less Than $50,000 Per Year
As of May 2024, the mean annual wage for all occupations was $67,920, according to the Bureau of Labor Statistics. Given this, it probably isn’t surprising the PYMNTS study revealed 44% of households earning less than $50,000 are struggling to pay the bills.
After paying for necessities, households earning less than $50,000 per year often have almost nothing left, said Hardik Patel, founder and financial advisor at Trusted Path Wealth Management, LLC.
“When prices go up or something unexpected happens, they may need to take on debt to cover it,” he said. “And because their budget is already tight, paying that debt back can take a long time and make things even harder.”
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People Living in Rural Areas
One-third — 34% — of households in rural areas are having trouble paying the bills, according to the PYMNTS survey. This is significantly higher than the 24% of suburban households and 26% of urban households in this predicament.
“Rural areas usually have fewer good-paying jobs,” Patel said. “People often have to drive long distances to work or shop, which raises gas and car costs.”
For those with kids, he said rural areas may also have fewer childcare and/or healthcare options, which can create additional financial strain.
Bridge Millennials
More so than any other age group, bridge millennials — the older members of this generation, born in the 1980s — are feeling financially strained. Specifically, 32% of this generation are struggling to pay the bills, according to PYMNTS.
“Many in this age group still carry student loan debt because higher education has been costly for a while now,” Patel said. “At the same time, they’re facing big expenses like childcare or trying to save for a home.”
While they may have more financial responsibilities than they did in their 20s, many haven’t reached their highest-earning years, he said. This can make it hard to keep up with the bills.
Single Parents
Given the costs of raising a child, it probably isn’t surprising the PYMNTS survey revealed 44% of unmarried adults with children are having issues staying out of the red.
Raising kids on one income is the hardest balance, Patel said. Since not having childcare probably isn’t an option — at least in the early years — they’re often forced to pay rates that can cost as much or more than rent. He added that this can stretch parents’ budgets beyond their earnings.
Single Adults
Living a bachelor or bachelorette lifestyle can strain a paycheck. Nearly one-third — 30% — of unmarried adults without children are struggling to pay the bills, according to PYMNTS. This is considerably more than the 20% of married-without-children households having trouble keeping their finances in check.
As a single person, Patrick Yaghoobians, certified financial planner (CFP), founder and financial planner at Noor Financial Services, said his expenses are inflated compared to his married friends and those in relationships, as he typically has to foot the entire bill.
“If we look at housing, the core expense for most people, a one bedroom apartment in [Los Angeles] will cost me $2,300, whereas my married friends can split the cost, providing significant cost savings,” he said.
He said vacations are another often overlooked example, as he — and other single adults — aren’t able to split a hotel room or AirBNB with a partner.
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This article originally appeared on GOBankingRates.com: 5 Types of People Struggling to Pay Bills Right Now — Are You One of Them?
