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HomeNetwork MarketingLegalShield Financial Stress Index Reveals Elevated Shopper Spending 

LegalShield Financial Stress Index Reveals Elevated Shopper Spending 


LegalShield’s Financial Stress Index from Could 2022 illustrated that customers are starting to really feel financially strained and are probably coming into a season of heightened borrowing prices and stress. 

A traditionally tight labor market has precipitated robust wage progress, with a 5.2% bump in common wages, however inflation has outpaced this development. When adjusting for inflation, wages truly declined all through many of the final yr whereas the price of family staples like meals, gasoline and utilities have risen sharply. These worth will increase haven’t but produced a rise in total shopper stress, however they’ve affected shopper habits. 

“We’ve been protecting a detailed eye on how customers are responding to the market throughout this robust financial time in our historical past and have observed it getting worse month over month,” stated Matt Layton, SVP of Knowledge, Insights, and Intelligence at LegalShield. “People are slowly starting to really feel the monetary weight affect their every day lives, their monetary choices and the way and the place they’re going to spend their cash.” 

The LegalShield Chapter Index dipped in Could 2022 and LegalShield expects bankruptcies to stay low for the close to future due to the robust labor market. Complete seasonally adjusted chapter filings decreased by 2.3% in Could, down 19% from the prior yr.  

Foreclosures have been easing again into pre-pandemic ranges as authorities assist applications expire, however proceed to be low when in comparison with historic ranges. Whereas the LegalShield Foreclosures Index improved by 4.4 factors in Could, foreclosures begins elevated 0.17% throughout the first quarter of this yr. A sturdy labor market and rising residence costs forecast {that a} fast enhance in foreclosures exercise could be unlikely. 

Whereas excessive demand for houses has continued to spice up the housing development market, rising mortgage charges and supplies prices are anticipated to gradual exercise quickly. Housing gross sales have additionally begun to slide. The LegalShield Housing Index decreased 2.8 factors final month to 110.5, nearing summer time 2020 ranges. Present residence gross sales had been down 2.8% in April and down 5.9% when in comparison with final yr’s ranges. Gross sales are nonetheless anticipated to stay wholesome, however housing affordability is a rising concern and new residence gross sales will not be anticipated to rebound any time this yr. 



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