The impact of credit counseling on subsequent borrower behavior

Gregory Elliehausen, E. Christopher Lundquist, Michael E. Staten

Research output: Contribution to journalArticlepeer-review

72 Scopus citations


The study examined the impact of individualized credit counseling delivered to nearly 8,000 consumer clients during 1997. Credit bureau data provided objective measures of credit performance at a variety of margins between 1997 and 2000 for counseled clients, relative to a comparison group of uncounseled borrowers. Receipt of counseling was associated with a positive change in borrower credit profiles. Techniques to control for self-selection into counseling reveal that much of the improvement was attributable to characteristics unique to consumers who sought counseling. But counseling itself was associated with substantial reductions in debt and account usage, and appeared to provide the greatest benefit to those borrowers who had the least ability to handle credit prior to counseling.

Original languageEnglish (US)
Pages (from-to)1-28
Number of pages28
JournalJournal of Consumer Affairs
Issue number1
StatePublished - Jun 2007

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics, Econometrics and Finance(all)


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