Induced control and the willingness to contact creditors in the context of financial stress

The lack of contact between a debtor and creditor has been identified as a big problem in overcoming financial stress and debt. This study aimed to investigate whether inducing control results in greater willingness to contact creditors. Furthermore, financial self-efficacy was investigated as a moderator of this relationship. A total of 134 participants were assigned to either an induced control group or a baseline group. The participants were asked to recall a negative financial experience and were then presented with a fictional letter from an imaginary creditor, urging them to contact the creditor as soon as possible. The creditor letter was left unchanged from a standard creditor letter in the baseline group, while in the control group, the letter offered two possibilities to help repay outstanding debt. After reading the letter, participants were asked if they would be willing to contact the creditor. The study found that there was a significant difference in the participants'...Show moreThe lack of contact between a debtor and creditor has been identified as a big problem in overcoming financial stress and debt. This study aimed to investigate whether inducing control results in greater willingness to contact creditors. Furthermore, financial self-efficacy was investigated as a moderator of this relationship. A total of 134 participants were assigned to either an induced control group or a baseline group. The participants were asked to recall a negative financial experience and were then presented with a fictional letter from an imaginary creditor, urging them to contact the creditor as soon as possible. The creditor letter was left unchanged from a standard creditor letter in the baseline group, while in the control group, the letter offered two possibilities to help repay outstanding debt. After reading the letter, participants were asked if they would be willing to contact the creditor. The study found that there was a significant difference in the participants' willingness to contact creditors. However, financial self-efficacy was not found to be a significant moderator. The present study provides additional support to previous findings that increasing perceived control led to a higher willingness to contact in the context of financial hardship.Show less

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Induced control and the willingness to contact creditors in the context of financial stress