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...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
This research focuses on the willingness of people who experience(d) debt to contact their creditor and the role of the shame resilience theory, with two main components (feeling trapped and...Show moreThis research focuses on the willingness of people who experience(d) debt to contact their creditor and the role of the shame resilience theory, with two main components (feeling trapped and isolated and feeling powerless). The study had four different conditions and corresponding creditor letters. The first hypothesis was that reducing feeling trapped and isolated leads to more willingness to contact compared to baseline (H1). The second hypothesis was that inducing power leads to more willingness to contact compared to baseline (H2). Results showed that both conditions scored significantly higher on willingness to contact compared to the baseline condition. We explored if the combined condition leads to more willingness to contact compared to the reduced feeling trapped condition (Exploration analysis 1). Secondly, we explored if the combined condition scored higher on willingness to contact compared to the induced power condition (Exploration analysis 2). Results showed that the combined intervention was no more effective than a single intervention.Show less
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...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
Research on financial help-seeking behaviour has found shame to be one of the underlying components in help avoidance. The aim of the present study was to investigate whether increasing shame...Show moreResearch on financial help-seeking behaviour has found shame to be one of the underlying components in help avoidance. The aim of the present study was to investigate whether increasing shame-resilience leads to an increased willingness to contact a creditor and to a reduced use of avoidant action tendencies. Additionally, the study examined whether men and women differ in their experience of financial shame. Participants (N = 133) were assigned to two conditions (shame-resilience and control condition) and they were asked to recall a negative financial situation. After this, the participants were shown an email from an imagined creditor, which asked them to be in contact with the creditor as soon as possible. In the control condition the communication style of the email was neutral whereas in the shame resilience condition the communication style aimed to induce a sense of connectedness with other people, who also share experiences of financial hardship. After the email, the participants were asked to fill in a questionnaire that assessed their behavioural action tendencies regarding their situation. The intervention was found to significantly increase the participants’ willingness to contact the creditor and to significantly reduce a tendency to ignore a severity of the situation. However, no significant effects were found on a tendency to refuse to believe the situation or on a tendency to distract oneself with other activities. Also, no gender differences were found. The study provides valuable information on how to encourage people in financial hardship to take action to improve their financial situation.Show less
Research master thesis | Psychology (research) (MSc)
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As the negative consequences of debts are substantial, it is important that indebted people seek and accept help. However, people in debt are often reluctant to contact the creditor and identify...Show moreAs the negative consequences of debts are substantial, it is important that indebted people seek and accept help. However, people in debt are often reluctant to contact the creditor and identify shame as a barrier. Moreover, they experience a lack of acknowledgement when communicating with creditors. Given the human need for acknowledgement and the suggestion that acknowledgement can reduce shame, the current study examined the effect of acknowledgement on indebted people’s willingness to contact the creditor and explored the role of financial shame. To this end, 206 native English-speaking people with current or past debts completed an online experiment in which they read either a standard creditor letter or a creditor letter in which the creditor acknowledged the situation of the person in debt. Willingness to contact the creditor and financial shame did not differ between participants who read a creditor letter in which their situations were acknowledged and those whose read a standard creditor letter. However, higher financial shame was associated with lower willingness to contact. We conclude that acknowledging indebted people’s situations is not enough to increase their willingness to contact the creditor. Future research could test other ways to address and reduce the financial shame.Show less
This thesis looks at the seemingly unbridled growth in credit and accompanying debt in China. It considers why the Chinese government has been unwilling in its practical manner to curb such a...Show moreThis thesis looks at the seemingly unbridled growth in credit and accompanying debt in China. It considers why the Chinese government has been unwilling in its practical manner to curb such a financially dangerous growth in outstanding, short term debts on projects which mostly only have lonbg term financial benefits. By taking a political economy look at the manner in which Chinese growth has turned financial and construction based, this thesis argues that the CCP's unwillingness for not acting on this financial bubble, is due to its core duties as mandated upon its self.Show less
