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2023 Annual Conference

May 16–18, 2023

Palace Station Hotel & Casino, Las Vegas, NV, US

IMPORTANT NOTICE: The date, time, and room assignment of YOUR presentation is SUBJECT TO CHANGE.

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Confirm your place in the schedule by following the instructionss that were emailed to you. Each presentation must have a separate paid registration. Contact the ACCI office immedicately by email at admin@consumerinterests.org to report any conflict, all corrections to the details of the presentation (including author names and the order they are listed as this is how it will be in the final program), or if you have any questions. Please be sure to reference the session title(s), date(s), and time(s) when you contact us.

D1c Prevention, Resolution, or Counseling: Testing Three Approaches to Preventing Debt Payment Delinquencies in a Large-Scale Field Experiment

Wednesday, May 17, 2023 at 2:00 PM–3:30 PM PDT
Room 1
Short Description

Debt ownership is a common and increasingly large part of households' financial lives, which potentially exposes them to long-term credit risks from missed debt payments. In this study, we partnered with a large credit union to conduct a ten-arm field experiment aimed at reducing delinquent payments on installment debts. In this experiment, we tested common behavioral interventions such as payment reminders against more novel approaches such as the use of magnet reminders and the development of a savings account that automated emergency savings. We also tested the impact of offering financial counseling services through a third-party organization. Our findings indicate that the email reminders–which emphasized resolving current delinquencies in some treatments and preventing future delinquencies in others–were effective at reducing payment delinquency rates in general, but were less effective at reducing severe delinquencies. Other, more intensive treatments, which required participants to enroll in a new account or financial counseling, likely did not have an impact due to low takeup rates. We also find limited evidence that certain interventions were more effective for individuals with higher credit risk.

Type of presentation

Accepted Oral Presentation

Submitter

Stephen Roll, Washington University in St. Louis

Authors

Yung Chun, Washington University in St. Louis
Stephen Roll, Washington University in St. Louis
Olga Kondratjeva, Washington State
Sam Bufe, Washington University in St. Louis
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