Vulnerable consumers and debt: Can social marketing assist?

There has been an increase in consumers’ reliance on credit and rising consumer debt. The increase is especially problematic for those least able to afford debt of any kind – welfare recipients. This qualitative study reports on 120 Australian welfare recipients’ attitudes towards debt, their understanding about what constitutes acceptable debt and the debt-management strategies they adopt. The results of this research show that welfare recipients see debt as a way of life and as a means of survival in a society where a core value appears (to them) to be the acquisition of material wealth. Their status as income earners and therefore their capacity to service debt is less than others. Consequently, we could expect that their debt levels would be proportionally less; however, many participants in this research did not appear to understand the long term consequences of their level of debt. The paper concludes with a discussion as to how social marketing can be applied to potentially assist this vulnerable consumer group and the wider community.

► Australian welfare recipients’ ideas about debt, acceptable debt and debt management.
► Welfare recipients see debt as a way of life and as a means of survival.
► A core value appears (to them) to be the acquisition of material goods.
► Little understanding of long term consequences of debt and many were deeply in debt.
► Social marketing could assist this vulnerable consumer group and the wider community.