Richard Disney email@example.com
Credit counseling: a substitute for consumer financial literacy?
Disney, Richard; Gathergood, John; Weber, Jörg
JOHN GATHERGOOD JOHN.GATHERGOOD@NOTTINGHAM.AC.UK
Professor of Economics
Jörg Weber firstname.lastname@example.org
Is financial literacy a substitute or complement for financial advice? We analyze the decision by consumers to seek financial advice in the form of credit counseling. Credit counseling is an important component of the consumer credit sector for consumers facing debt problems. Our analysis accounts for the endogeneity of an individual's financial situation to financial literacy, and the endogeneity of financial literacy to exposure to credit counseling. Results show counseling substitutes for financial literacy. Individuals with better literacy are 60% less likely to use credit counseling. These results suggest that credit counseling provides a safety net for poor financial literacy.
|Journal Article Type||Article|
|Publication Date||Oct 1, 2015|
|Journal||Journal of Pension Economics and Finance|
|Publisher||Cambridge University Press (CUP)|
|Peer Reviewed||Peer Reviewed|
|APA6 Citation||Disney, R., Gathergood, J., & Weber, J. (2015). Credit counseling: a substitute for consumer financial literacy?. Journal of Pension Economics and Finance, 14(4), doi:10.1017/S1474747215000219|
|Keywords||Credit counseling; financial advice; financial literacy; household finance|
|Copyright Statement||Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by/4.0|
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by/4.0
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