Summary
A report from LegalShield shows that American consumers are feeling financial stress at levels not seen since early 2020 due to job losses, rising prices, and debt. Bankruptcy inquiries have increased, and consumers are increasingly worried about their financial situation. The Consumer Stress Legal Index, which tracks legal inquiries related to financial stress, has reached new highs.
Key Facts
- Bankruptcy inquiries increased by 17% in the third quarter of the year.
- The Consumer Stress Legal Index rose 4.4% between June and September.
- The index tracks about 150,000 monthly legal calls to assess consumer stress.
- Inflation remains above the Federal Reserve's 2% target, with a 3% annual rate in September.
- Many Americans are using "buy now, pay later" loans for essential purchases.
- Roughly half of "buy now, pay later" users are missing payments.
- Job growth data from the Labor Department is delayed due to a government shutdown.
- Financial pressures are expected to rise further, potentially increasing bankruptcy filings.
