Relationships Among Credit Counseling Clients' Financial Well- being, Financial Behaviors, Financial Stressor Events, and Health

TLDR

The study examined how credit counseling relates to financial behaviors, stressor events, perceived well‑being, and health. Data from credit‑counseling clients were collected twice (June 2000 and January 2002) and path analysis was used to assess the relationships among the variables. Credit counseling directly reduced financial stressor events and indirectly improved perceived financial well‑being and health after 18 months, providing evidence of its effectiveness.

Abstract

The present study examined the relationships among credit counseling, financial behaviors, financial stressor events, perceived financial well-being, and health. Data were collected from clients of a large credit counseling organization on two occasions, once in June 2000 and again in January 2002. Path analysis was employed to assess relationships among the variables. Credit counseling and debt management program directly affect financial stressor events in a helpful way and indirectly affect perceived financial well-being and health of the participants after 18 months. Results provide some evidence of the effectiveness of credit counseling in improving financial and health variables.