Cultivating Financial Resilience: Illuminating the Nexus of Financial Literacy, Corruption Perception, and Sustainable Debt Strategies in Ghana

The current study aims to investigate the moderating effect of corruption perception on the nexus between financial literacy, debt restructuring, and sustainability in the Ghanaian context. Using a quantitative approach and descriptive survey design, data were collected from individuals directly impacted by government debt restructuring initiatives. The sample size was determined using an infinite population sample determination technique, resulting in a sample of 385 participants. Stratified sampling was employed to ensure representativeness, and various means, including Google Forms and assistance from financial institutions, were utilized to engage participants across 16 regions of Ghana. The findings reveal that higher perceptions of corruption are associated with lower debt sustainability but have a positive effect on debt restructuring. Financial literacy is positively associated with debt sustainability, while age and gender also influence debt management outcomes. Education level positively affects debt sustainability, while income is negatively associated with it but has no effect on debt restructuring. These findings have significant policy implications, underscoring the need to address corruption and promote financial literacy in debt management policies. They also have practical implications, emphasizing the importance of supporting individuals in adopting sustainable debt management strategies. The findings contribute to the theoretical understanding of the relationships between these factors and suggest avenues for future research.