In a new data set, LegalShield reveals that financial stress is impacting younger age brackets, especially Gen Z and Millennials. This information comes as pandemic-related federal relief and support structures reach their expiration dates.
Results from the company’s monthly Economic Stress Index indicate the widest divide between consumer confidence and consumer financial stress in more than two decades. Gen Z and Millennials have requested assistance at record-high rates since January 2020, and billing disputes, which indicate economic stress, hit an all-time high record and then continued at an elevated level throughout 2021.
“Based on these insights, we believe financial stress is returning and affecting the youngest cohorts first, those who are oftentimes the least financially prepared,” said Jeff Bell, CEO of LegalShield. “We understand how Americans are using legal services and the data is showing us continuous elevated activity in billing disputes and collections. This is an indicator of what will manifest in the coming months around consumer finance.”
LegalShield’s Housing Construction Index continued to decline this month, signaling continued strains on builders as they work amid supply chain challenges and seek to hire from a limited labor pool. Low inventory of homes and skyrocketing prices have slowed sales within the housing market, but demand is predicted to stay at high levels.