The latest data shows that a significant percentage of American workers are turning to side hustles to make ends meet. According to a recent PYMNTS survey, 22% of workers in the U.S. are engaging in side gigs to supplement their income. This trend is particularly pronounced among younger generations, with 32% of Gen Zers reporting having at least one side hustle.
The money earned through these side hustles is not being used for discretionary spending or savings, but rather to cover basic living expenses. In fact, 53% of workers with side hustles are living paycheck-to-paycheck, and losing this supplemental income would have a serious impact on their financial stability. Even high-income earners are turning to side hustles to fund savings and other financial goals, with 22% of them receiving extra income through active side gigs.
Household debt is on the rise across the country, with total household debt reaching $17.5 trillion in the fourth quarter. Mortgage balances saw the largest increase, reaching $12.25 trillion, followed by credit card debt at $1.13 trillion and auto loan balances at $1.61 trillion. As debts rise, so do delinquency rates, particularly among younger and lower-income households.
As consumers navigate increasing debt and financial stress, options like personal loans with lower interest rates can provide relief. Online marketplaces like Credible can help individuals compare multiple lenders and find the best rate for their needs. With consumer spending and debt on the rise as the U.S. economy begins to rebound, it's important for individuals to carefully manage their finances and explore all available options to improve their financial well-being.