Financial behaviours of consumers in credit counselling

Positive financial behaviours of consumers are examined using a national sample of consumers who use credit counselling services in the US from a behavioural economic perspective. The findings indicate that consumers in credit counselling may follow a hierarchical pattern in their financial behaviours, paying off debts and adjusting spending before considering saving. Consumers who are older, have a part‐time job (vs. the unemployed), and report a more secure retirement, a better family relationship, and a higher score of self‐evaluation of financial behaviours are likely to report more positive financial behaviours. Reporting more financial behaviours and a higher score of self‐evaluation of financial behaviours, along with several demographic and perception variables, tend to reduce financial stress and increase financial satisfaction among consumers who use credit counselling services.