Managing a moral identity in debt advice conversations

Area of Science:

• Social Sciences
• Psychology
• Sociology

Background:

• Stigma surrounding debt can deter individuals from seeking necessary financial advice.
• Limited research exists on how stigma impacts actual service encounters for stigmatized groups, particularly those with unmanageable debts.

Purpose of the Study:

• To examine how debt advisors and clients manage stigma during telephone advice conversations.
• To identify how interactional practices and institutional requirements affect stigma management and service engagement for individuals in debt.

Main Methods:

• Utilized conversation analysis and discursive psychology to analyze 12 telephone advice conversations.
• Focused on interactions between debt advisors and individuals experiencing problematic or unmanageable debts.

Main Results:

• Both clients and advisors acknowledged the moral implications of debt, often collaborating to manage stigma.
• Clients attempted to disclaim negative associations with debt, but this sometimes conflicted with insolvency agreements.
• Institutional demands could disrupt collaborative stigma management, leading to client resistance, which advisors handled in client-centered or institution-centered ways.

Conclusions:

• The approach and products offered by debt advice agencies significantly influence debtors' ability to navigate stigma-related barriers.
• Effective service delivery can either facilitate or impede debtors' engagement with financial support services.