An uptick in bankruptcy assistance among Generation X and Millennials signals a burgeoning debt crisis, overshadowing recent economic optimism, legal experts told Newsweek. In contrast to recently issued positive economic data showing a 29 percent surge in consumer confidence since November, LegalShield's December Consumer Stress Legal Index (CSLI) documents a relentless rise in financial duress, reaching a three-year peak as consumers seek legal help for bankruptcy and other legal assistance. The data, drawn from over 35 million legal service requests, is forecasting a dip in that consumer confidence, and exposes a groundswell of fiscal challenges. The trend, disproportionately impacting younger generations, points to a latent economic strain that macroeconomic figures may not fully capture, which hints at a potential credit reckoning on the horizon. It's reflected in broader economic data. U.S. household debt has seen an increase, rising 1.3 percent in the third quarter of last year to a record $17.29 trillion. The uptick was propelled by increases across mortgage, auto loan, credit card, and student loan balances, according to the Federal Reserve Bank of New York.
