Working together: understanding motivations and barriers to engagement in the consumer debt marketplaceAuthors: Sharon Collard
Funded by: Arrow Global Limited
Published by: Arrow Global Limited
Publication date: December 2013
Arrow Global commissioned the Personal Finance Research Centre, along with the Royal College of Psychiatrists and Plymouth Focus Advice Centre, to undertake a piece of research around motivations and barriers to engagement in the consumer debt marketplace.
The research found that problem debt can have complex causes that mean it is not straightforward to resolve. The root causes of problem debt are well documented and could be caused by any number of issues, from loss of income or a low and variable income, poor physical or mental health to relationship breakdown or drug, alcohol or gambling addictions.
From the customers’ perspective, how creditors communicate with them and creditors’ approach to debt repayment shape their relations. If creditors get these things right, the chances of recovering the money owed to them increase. If they get them wrong, the customer may disengage from further dialogue.
Customers want creditors to demonstrate empathy and understanding, to provide practical help and to work something out together that benefits both the creditor and the customer. This approach encourages customer engagement because it helps engender trust and it gives them the opportunity to regain financial control.
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