Improving adherence to debt repayment through behavioral modelling

American household debt to GDP ratio is 77% – one of the highest in the developed world.

American Financial Solutions is a non-profit organization located in Seattle, Washington. Over 20 years, they have helped over 450,000 Americans pay off over $9 billion USD in debt.

Although the service offered by AFS is strongly valued by clients at the beginning of the program, a variety of factors cause certain clients to drop out of the program. In many cases, this is due to a lack of healthy financial habits, driven by biases in client decision making.

AFS asked The Decision Lab to create a messaging strategy that can be used directly with AFS clients (through channels such as websites, phone, email and text message), in order to increase debt repayment rates.

Check out an extended write-up of the case study here.