LegalShield Consumer Stress Legal Index

The Leading Economic Indicator Based on Real Consumer Legal Behavior

Predicting economic trends through 35+ million consumer legal assistance requests spanning two decades. Our quarterly index leads the Conference Board's Consumer Confidence Index by 1-3 months.

Data and insights featured in

35M+

Consumer Legal Requests Analyzed

20+

Years of Historical Data

1-3

Months Ahead of Consumer Confidence Index

$26 million

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What 35 Million Legal Consultations Reveal About America's Financial Picture

While most consumer confidence measures rely on survey responses about how people feel about the economy, the LegalShield Consumer Stress Legal Index (CSLI) tracks what people actually do when facing financial stress. When households struggle with debt, face foreclosure threats, or consider bankruptcy, they seek legal help—creating a powerful leading indicator of economic distress (or, confidence).

Stress as a Predictor

Our index has consistently predicted major economic shifts:



2008 Financial Crisis: Bankruptcy Index spiked two quarters before the recession officially began

COVID-19 Economic Impact: CSLI showed consumer stress patterns weeks before traditional indicators

Post-Pandemic Recovery: Tracked the uneven nature of economic recovery across different demographics

Why Actions Speak Louder Than Surveys

The source of the CSLI is more than 150,000 calls per month from LegalShield members to LegalShield provider attorneys across all 50 states.

Unlike sentiment-based surveys, the CSLI provides "hard" behavioral data that reflects genuine financial pressure as expressed by what our members are asking for help with. This makes our data particularly valuable during periods when consumer sentiment and actual financial conditions diverge.

Consumer Debt and Legal Stress

In this video, LegalShield’s Matt Layton and Ben Farrow explore the latest findings from the Q2 Consumer Stress Legal Index (CSLI), revealing how debt-driven pressure is driving more Americans to seek legal help as the CSLI hits its highest level since November 2020.

The Three Components of Economic Prediction

Consumer Stress Legal Index (CSLI)

What it measures: Overall consumer legal assistance requests related to financial distress, debt issues, and consumer protection matters. We track the area of law subjects (not the content) of about 150,000 calls per month as indexed by provider attorneys across the nation.

Why it matters: Consumer spending drives 70% of U.S. economic activity. When consumers seek legal help for financial issues, patterns in the type of requests for advice signal underlying economic stress before it shows up in traditional metrics.

Predictive value: We have seen our CSLI lead Conference Board's Consumer Confidence Index by 1-3 months with 85% correlation accuracy.

Bankruptcy Index

What it measures: Legal consultations related to personal and business bankruptcy proceedings.

Why it matters: Bankruptcy is often the last resort for financial distress, but the consideration of bankruptcy begins much earlier. Our data captures this "pre-filing" period.

Predictive value: Leads actual bankruptcy filings by two quarters, providing early warning for economic downturns.

Foreclosure Index

What it measures: Legal assistance requests related to mortgage issues, foreclosure defense, and housing-related financial problems.

Why it matters: Housing costs represent the largest expense for most households. Foreclosure stress often precedes other forms of financial distress.

Predictive value: Closely correlates with Mortgage Bankers Association foreclosure rates, often leading by one quarter.

Consumer Stress Index Reports

Our latest quarterly report reveals emerging trends in consumer financial stress and provides forward-looking indicators for Q3 and Q4 economic conditions.

Key Findings This Quarter:
Overall CSLI: Moderate increase in consumer stress indicators
• Regional Variations: Significant differences between urban and rural stress patterns
• Bankruptcy Trends: Early warning signals for potential increase in filings
• Foreclosure Patterns: Stabilization in most markets with emerging hotspots

Get the latest report

Consumer Stress Legal Index Full Reports

Research Methodology & Data Quality

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Data Collection Process

Our analysis draws from LegalShield's comprehensive database of consumer legal assistance requests spanning over 20 years. This includes:

• Volume: 35+ million individual legal consultations and case openings

• Scope: Nationwide coverage across all 50 states and demographic segments

• Frequency: Real-time data collection with monthly aggregation and quarterly reporting

• Categories: 50+ legal service categories mapped to economic stress indicators

Statistical Analysis

Our economists and data scientists employ advanced statistical methods including:


• Seasonal adjustment and trend analysis
• Correlation analysis with major economic indicators
• Regional and demographic segmentation
• Predictive modeling and validation testing

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Quality Controls

Feeds from our 38 provider law firms supply the data set. We maintain integrity through automated validation and manual review processes. We use independent parties to help correlate our findings with the major indicators.

Research Methodology & Data Quality

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For Researchers & Academics

We provide historical data and research support for qualified academic institutions studying consumer behavior, economic prediction, and behavioral economics.

Available: Historical datasets, methodology documentation, consultation support

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For Media & Journalists

Access our media kit with high-resolution charts, expert commentary, and interview opportunities with our chief economist and data science team.

Available: Press releases, expert interviews, custom analysis

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For Policymakers

We support government agencies and policy organizations with specialized analysis and briefings on consumer financial stress trends.

Available: Policy briefings, custom reports, expert testimony

FAQs

Find answers to common questions about our service.

How accurate is the Consumer Stress Legal Index at predicting economic downturns?

The CSLI has historically led the Conference Board's Consumer Confidence Index by 1-3 months with an 85% correlation accuracy. During the 2008-2009 recession, our Bankruptcy Index preceded the actual bankruptcy surge by two quarters, providing crucial early warning signals.

What makes this index different from other consumer confidence measures?

Unlike survey-based confidence measures that rely on sentiment, the CSLI is based on actual consumer behavior—real legal assistance requests. This provides "hard" data that reflects genuine financial stress rather than perceived economic conditions, making it particularly valuable when sentiment and reality diverge.

How often is the index updated and released?

As of 2025, we release comprehensive quarterly reports. Data is collected continuously and analyzed monthly for internal trending, but public reports are issued quarterly to provide more meaningful trend analysis and reduce noise.

What types of legal requests are included in the analysis?

The index analyzes bankruptcy consultations, foreclosure assistance, debt collection defense, consumer protection issues, employment law matters related to financial stress, and other legal services that correlate with economic distress. We exclude family law, criminal matters, and other legal areas not directly related to financial stress.

Can I access historical data or regional breakdowns?

Yes, we provide historical data dating back to 2004 for qualified researchers, policymakers, and media organizations. Regional and demographic breakdowns are available upon request for legitimate research and policy purposes.

Still have questions?

For inquiries about CSLI historical data, research methodology, media requests, or general questions, please contact [email protected]. Our News and Communications team is here to help.