Temptation's itch: Mindlessness, acceptance, and mindfulness in a debt management program

Abstract

This study examines the experience of temptation through the accounts of consumers who have entered a debt management plan (DMP). During 12 weeks, participants reported weekly temptations. The results are consistent with socio-cognitive theory; participants with higher selfefficacy are better able to manage their emotions, resist justifications connected with entitlement, and perceive their difficult circumstances as providing them the opportunity to develop new financial skills and an improved financial identity. The results show that DMP consumers engage in three patterns of responses to temptation that vary in degree of self-efficacy: mindlessness, acceptance, and mindfulness. The highest level of self-efficacy and success in the DMP is associated with mindfulness, as these participants feel pride when they "work the program" and resist temptation. 1 IntroductionEvery year, millions of consumers in the United States seek out credit counseling in an attempt to dig themselves out of debt and repair their credit scores (National Foundation forCredit Counseling [NFCC], 2015). Approximately one-third of those are counseled to enroll in a debt management plan (DMP). 1 To avoid bankruptcy, consumers in a DMP work with counselors to design budgets so that their unsecured credit card debts can be paid off in three to five years. Clients who can live within a tight budget can successfully pay off their debts by the end of the program. Yet, despite providing clients with financial education and information in an introductory seminar, along with one-on-one credit counseling that includes co-creating a workable budget, DMPs have limited ability to create lasting behavior change. Maintaining a reduced budget after engaging in a lifestyle of over-spending is a challenging experience.Industry statistics (see footnote 1) and recent research (Brown, Link, & Staten, 2012) suggest that the overwhelming majority of DMP clients ultimately fail.The underlying phenomenon-consumer debt-is a long-standing problem that research views through the lenses of three different streams. The first perspective comes from research on consumer financial decision-making, which primarily examines the role of education and information in improving spending and saving decisions (Fernandes, Lynch, & Netemeyer, 2014;Richins, 2011). The second perspective, self-regulation theory, addresses consumer domains in which behavioral change might be necessary-for example, weight loss and gambling. In selfregulation theory, willpower, goal setting, and self-monitoring are necessary to prevent selfcontrol failures (Baumeister, 2002 2 that fuel the tension between giving into and resisting financial temptation (Belk, Ger, & Askegaard, 2003;Bernthal, Crockett, & Rose, 2005;Peñaloza & Barnhart, 2011). Collectively, research suggests that educational, psychological, and institutional factors influence how consumers pay off their debts. However, none of these approaches provides an integrative approach to addressing consumer indebtedness or offers integrative...

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