LegalShield’s latest Consumer Stress Legal Index for February sheds light on the ongoing financial strain experienced by consumers in the United States, as evidenced by a sustained increase in stress levels.
Based on an average of 150,000 monthly requests for legal assistance from American consumers, the February CSLI registered a score of 64, marking an 8.8% year-over-year rise.
This upward trend aligns with the drop in The Conference Board’s Consumer Confidence Index and echoes the decline in Consumer Sentiment reported by the University of Michigan, underscoring a prevailing sense of unease among consumers.
The CSLI, serving as a leading indicator of the Consumer Confidence Index with a correlation level of -0.85, highlights a notable uptick in financial stress indicators.
Demographic groups
Specifically, inquiries regarding billing disputes and loan modifications have seen significant spikes, particularly among Millennials and Gen Xers.
These demographic groups have witnessed a staggering 353% increase in loan modification inquiries compared to the previous year, reflecting the impact of lingering elevated interest rates.
In response to the rising financial stress, LegalShield’s provider attorneys have observed consumer actions such as loan modifications and adjustments to existing loans, driven by the need to navigate the challenges posed by high interest rates.
Additionally, the housing sector has felt the effects of elevated interest rates, with declines observed in new home construction and home purchase inquiries, suggesting a cautious approach among consumers awaiting potential rate changes.
LegalShield’s comprehensive dataset underscores the urgency of addressing the underlying factors contributing to consumer stress.
