Offering the right type of help to people in debt

In the Netherlands, more than 1 million people have accumulated debts. They can go to debt counseling to receive help for their financial problems. The current research investigated what type of help participants prefer to offer to a person in debt, focusing on two types of help: budget coaching, where debtors are being coached to keep their autonomy, and is often offered to people in early debt stages. We defined this as autonomy-oriented help. With budget management, the finances are taken off hands to relieve the debtor from stress, which is often offered to people in late debt stages. We defined this as dependency-oriented help. Previous research showed that people need dependency-oriented help when their financial stress causes cognitive impairments, we think this is also needed in an intermediate debt stage, than only in a late debt stage. We investigated if participants empathized with the help- seeker, would acknowledge the amount of stress, and would offer dependency...Show moreIn the Netherlands, more than 1 million people have accumulated debts. They can go to debt counseling to receive help for their financial problems. The current research investigated what type of help participants prefer to offer to a person in debt, focusing on two types of help: budget coaching, where debtors are being coached to keep their autonomy, and is often offered to people in early debt stages. We defined this as autonomy-oriented help. With budget management, the finances are taken off hands to relieve the debtor from stress, which is often offered to people in late debt stages. We defined this as dependency-oriented help. Previous research showed that people need dependency-oriented help when their financial stress causes cognitive impairments, we think this is also needed in an intermediate debt stage, than only in a late debt stage. We investigated if participants empathized with the help- seeker, would acknowledge the amount of stress, and would offer dependency-oriented help in an intermediate stage. Therefore, we manipulated the three debt stages; early, intermediate, and late, and manipulated perspective-taking. In this experiment, participants (N = 374) were randomly assigned to the manipulation conditions, read a scenario about a debtor in need, and filled out a questionnaire. We found that participants indicated acknowledging the stress of the help-seeker, but by taking perspective, participants indicated offering more autonomy- oriented help than dependency-oriented help. With this research, we suggest the debt counseling of the Netherlands to provide debt counselors the knowledge about debts, stress, and cognitive functioning.Show less

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Offering the right type of help to people in debt