The affordability squeeze for higher-income Americans is showing up in unexpected places, even as inflation cools. Consumer analysts say high prices still shape daily decisions across income levels. Some higher earners report using installment plans and other workarounds. Others are stretching loans or leaning on credit to maintain lifestyles.
In recent comments, Matt Schulz, chief consumer finance analyst at LendingTree, said affordability stress is not limited to low earners. He pointed to survey results showing unusual behavior among higher-paid individuals. The pressure is also visible in housing, vehicle financing, and credit card balances.
Higher Pay Does Not Cancel Higher Prices
Schulz cited LendingTree research on self-checkout theft and price stress. He said the most common reason people steal is high prices. He added that self-checkout users earning $100,000 or more were more likely to admit unscanned items.
He also pointed to the use of buy now, pay later. Schulz said a recent survey found that higher earners were more likely to expect to use BNPL. Those plans often split purchases into four payments with no interest. That can feel manageable, even for strong earners.
The pattern suggests a broad affordability reset. Some people are thriving and spending confidently, Schulz said. Yet many households still feel constrained by everyday costs. The result is uneven financial confidence, even within the same income bracket.
Housing Fixes Look Risky on the Numbers
Housing affordability remains a core stress point in the affordability squeeze for higher-income Americans. Schulz addressed the talk of 50-year mortgages as a potential tool. He said the idea is appealing, but the math is problematic.
He described a $500,000 mortgage at a 6.1% interest rate. He said a 50-year term could reduce monthly payments from $3,030 to about $2,700. The savings, he argued, come at a steep long-run cost.
Schulz said total interest could reach about $1.1 million over 50 years. He contrasted that with roughly $590,000 of interest on a 30-year mortgage. He described the 50-year option as 86% more interest.
He also said equity builds slowly over the longer term. Schulz said that after 40 years, borrowers might repay only 52% of the principal. He added that the average first-time buyer is close to 40. A loan ending near age 90 looked unwise, he said.
Auto Loans Stretch as Prices Stay High
Vehicle costs are another flashpoint for the affordability squeeze for higher-income Americans. Schulz said auto loan terms are already getting longer. He cited common terms of six or seven years, compared with the usual three to five.
He also cited a higher starting balance for new loans. Schulz said the initial loan balance now averages around $42,000. He said the balance is smaller than a mortgage, but still significant when stretched out over time.
Long terms also clash with depreciation, he said. Vehicles often lose value quickly, especially in early years. Schulz suggested buyers reconsider the model choice if financing must extend that long. He also noted that used cars can still offer savings, despite higher prices.
Credit Card Debt, Rates, and Negotiation Tactics
Credit cards remain a major stress point, including for higher earners, Schulz said. He said higher-income consumers often have more access to credit. Larger limits can expand spending capacity and increase debt risk. The result can be high balances that feel hard to unwind.
Schulz cited a national average card balance among revolvers. He said it was $7,321, up from $6,921 a year earlier. He also cited average interest rates near 24% on new card offers. Those figures underscore the urgency of payoff strategies.
He said balance-transfer cards can be a strong tool for borrowers with good credit. He highlighted offers with a 0% introductory rate. He also urged consumers to call issuers and ask for lower rates. Schulz said 83% of people who asked got a lower rate.
He added a typical reduction in size from that outreach. Schulz said the average cut was 6.7 percentage points. He also said negotiation works with other companies. Examples included streaming services and bank fees. He encouraged polite connection and clear reasons for help.
Schulz said preparation strengthens bargaining power. He urged consumers to cite cheaper competitor pricing when available. Even if a company refuses a price cut, he said, it may offer alternative perks. The message is simple: do not leave money on the table.
