Financial Stress and Avoidance Behaviour: The Promising Role of Shame Resilience.

People in debt often avoid contacting their creditors, a behaviour likely driven by feelings of shame. In the Netherlands, around one million households face significant debt, leading to stress and shame, which exacerbates financial problems by hindering communication with creditors. This study investigates the impact of building shame resilience on reducing avoidance behaviours among debtors. Enhancing shame resilience means increasing individuals' sense of control over their situation and reducing feelings of being trapped. These factors can empower debtors to confront their financial problems rather than avoid them. Thus, an experiment involving 308 participants with financial distress evaluated the effectiveness of different versions of the same creditor letter. These messages were adjusted to either increase a sense of control, reduce feelings of being trapped, or serve as a baseline with no specific emotional content. The study hypothesised that these adjustments would lead to...Show morePeople in debt often avoid contacting their creditors, a behaviour likely driven by feelings of shame. In the Netherlands, around one million households face significant debt, leading to stress and shame, which exacerbates financial problems by hindering communication with creditors. This study investigates the impact of building shame resilience on reducing avoidance behaviours among debtors. Enhancing shame resilience means increasing individuals' sense of control over their situation and reducing feelings of being trapped. These factors can empower debtors to confront their financial problems rather than avoid them. Thus, an experiment involving 308 participants with financial distress evaluated the effectiveness of different versions of the same creditor letter. These messages were adjusted to either increase a sense of control, reduce feelings of being trapped, or serve as a baseline with no specific emotional content. The study hypothesised that these adjustments would lead to greater willingness to contact creditors and that gender might moderate the impact. Results showed that messages enhancing control or reducing feelings of being trapped significantly increased participants' willingness to engage with creditors. Although the hypothesis regarding gender moderation was not supported overall, women responded more positively to messages reducing feelings of being trapped. These findings suggest that supportive communication strategies addressing emotional barriers like shame can facilitate better debt management. The study's implications for policy and creditor practices emphasise prioritising psychological well-being to enhance financial stability.Show less

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Financial Stress and Avoidance Behaviour: The Promising Role of Shame Resilience.