Using Loan plus Lender Literacy Information to Combat One-Sided Marketing of Debt Consolidation Loans

The marketing of debt consolidation loans is intended to offer a financial remedy to consumers faced with mounting debt and credit problems and unable to meet their monthly payments. The authors argue that debt consolidation loan marketing overemphasizes the short-term benefits (e.g., lower monthly payments) and downplays the considerable downside of these loans (e.g., longer repayment and more total interest paid). Two experiments demonstrate that a financial literacy intervention combining information about loans and lenders can help consumers understand and respond to debt consolidation loan marketing (whereas a basic financial numeracy intervention does not). Implications for consumers, marketers, public policy makers, and researchers who work in the area of financial literacy are discussed.

• 저널Journal of Marketing Research · 48(SPL) · S51–S59
• 토픽Financial Literacy, Pension, Retirement Analysis · Accounting
• DOI10.1509/jmkr.48.spl.s51
• 저자Lisa E. Bolton, Paul N. Bloom, Joel B. Cohen