|
Research
Credit Counseling Helps
Effects of Credit Counseling and Debt Management on
Financial Stressors and Financial Management Behaviors, (2006). Journal of Family and Consumer Sciences, Kim &
Garman
Many Americans who experience difficulty repaying what they owe seek assistance from nonprofit credit counseling agencies to help manage their debts. This study examined the effects of credit counseling and debt management on financial management behaviors and financially stressful events. Consumers who continued in a debt management program for 18 months reported improved financial management behaviors and experienced fewer stressful events than consumers who did not remain in the program.
In 2003 more than 1.6 million people declared bankruptcy (American Bankruptcy Institute, 2004), and in the previous year about 9 million sought the advice of credit agencies regarding management of their money (Bayot, 2003; Loonin & Plunkett, 2003). Overspending and excessive credit usage prompt many people to seek credit counseling and/or declare bankruptcy, but millions encounter financial difficulties because of unemployment, loss of overtime, bills for uninsured medical services, and marital separation or divorce (Sullivan, Warren, & Westbrook, 2000). Consumers contact credit counseling agencies to control their debts. Read more (Word)... |
