LegalShield’s Consumer Stress Legal Index (CSLI) revealed that consumers are now experiencing financial stress at a level higher than has been seen since November 2020. The CSLI, which analyzes data from more than 35 million consumer requests for legal assistance, originates from unprompted calls from existing LegalShield members seeking help from an attorney.
According to this accumulated data, Millennials and Gen X are feeling the most financial pressure. Payday loan assistance has increased among this group, signaling potential credit problems, as well as auto repossessions and billing disputes.
This CSLI data is in sharp contrast to economic indicators that show strong GDP growth and record holiday spending, but the growing economic pressures that Americans report feeling is not expected to decline in the coming months as bankruptcies and foreclosures predict instability for consumers nationwide.
“Despite rosy macroeconomic signs, our data reveals a concerning rise in consumer debt struggles–from bankruptcies to car repossessions,” said Warren Schlichting, LegalShield CEO. “With rising inquiries about foreclosures and missed bill payments, we’re monitoring this retail-level financial stress. People may not be able to cover costs despite positive jobs reports and interest rates.”