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Managing consumer debt: Culture, compliance, and completion

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  • Dellande, Stephanie
  • Gilly, Mary C.
  • Graham, John L.

Abstract

We examine the cultural dimensions of participation in a debt management program (DMP). Archival data from Consumer Credit Counseling Service provide insights into the behavior of consumers in a DMP. Latino clients differ from Anglo clients, and are ultimately less successful in resolving debt problems. A key difference appears to be the expected monthly payment established for clients. While only debt level determines Latinos' expected payment, Anglos appear to better negotiate an expected payment from creditors, increasing their success. Importantly, homophily increases compliance for Latino debtor–counselor dyads. Overall, this study contributes to the transformative service research (TSR) literature by suggesting ways culture influences adherence to and completion of a DMP, leading to financial freedom for consumers in distress.

Suggested Citation

  • Dellande, Stephanie & Gilly, Mary C. & Graham, John L., 2016. "Managing consumer debt: Culture, compliance, and completion," Journal of Business Research, Elsevier, vol. 69(7), pages 2594-2602.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:7:p:2594-2602
    DOI: 10.1016/j.jbusres.2015.10.140
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    Cited by:

    1. Boto Ferreira, Mário & Costa Pinto, Diego & Maurer Herter, Márcia & Soro, Jerônimo & Vanneschi, Leonardo & Castelli, Mauro & Peres, Fernando, 2021. "Using artificial intelligence to overcome over-indebtedness and fight poverty," Journal of Business Research, Elsevier, vol. 131(C), pages 411-425.
    2. Qun Zhang & Hyungsoo Kim, 2019. "American Young Adults’ Debt and Psychological Distress," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 22-35, March.
    3. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.
    4. Tang, Chuanyi & Guo, Lin & Gruen, Thomas, 2024. "A goal-driven framework for compliance-dependent services: Pathways to customer satisfaction and well-being," Journal of Business Research, Elsevier, vol. 177(C).

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