Policy Target
Financial rehabilitation
(i.e., starting over financially without debt)
EVIDENCE-BASED STRATEGY
Initiatives raise awareness of the ripple effects of financial rehabilitation (e.g., limited opportunities for buying a house or opening a business) and the stronger negative impact on people with a low income and insecure employment relative to people of higher socioeconomic status.
SAMPLE INDICATORS
- Number/percentage of people who report having access to clear and accurate information about the socioeconomic consequences of filing for bankruptcy, such as a reduced credit rating (included in their credit reports for years) and difficulties in obtaining loans, a mortgage, or credit cards
- People’s reports on their experiences in finding and using free, reliable, and unbiased financial advice (e.g., credit counsellor) to help them navigate their debts and improve their financial situations
- Bankruptcy rate
EVIDENCE-BASED STRATEGY
Initiatives help people make informed decisions about their actions towards their debts and find the best alternatives for different socioeconomic groups, considering people’s life circumstances.
SAMPLE INDICATORS
- Confidence levels about plans to pay off debt
- Individual’s perceptions of progress towards paying down their debt
- Number/percentage of participants who report knowing how and where to go for information and advice before making financial decisions
EVIDENCE-BASED STRATEGY
Initiatives minimize the risks of bankruptcy-triggering poverty traps among disadvantaged people with insecure jobs and low and volatile income. Initiatives seek to equalize their conditions to those of people with access to sufficient and secure employment and steady and livable income.
SAMPLE INDICATORS
- Financial attitudes and behaviours (e.g., credit use, spending, and savings) before and after filing for bankruptcy
- Number/percentage of people who agree their bankruptcy meant a fresh start in life (e.g., stratified by socioeconomic status)
- Levels of self-reported satisfaction with current financial situation (e.g., stratified by income levels)