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Ireland’s policy approach to personal insolvency went through sudden changes in 2012 after a lengthy period of stability. This article presents the findings of a study examining one of the remedies introduced with the Personal Insolvency Act 2012 (as amended), the Debt Relief Notice (DRN). The study examined the DRN’s effectiveness in addressing th...
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... constant comparison method, in line with Maykut and Morehouse (1994), was employed as the main data analysis approach, and its organisation was assisted by the NVivo 11 qualitative data analysis software. The themes retained once the analysis was completed are shown in Table 1, grouped under three headings: financial dimension, human dimension, and health dimension. The final themes were then linked to the literature, specifically the CFPB financial well-being framework (CFPB, 2015), to ensure they could answer the research question. ...Citations
... However, being in debt increases the likelihood of facing financial problems (Boyle, 2022), accruing debts (Baines & Hager, 2021), needing a bank loan (Sierpinska-Sawicz & Bak, 2021), and having a weak currency on the market (Sgambati, 2019), all of which can lead to mistrust from clients and suppliers. The risk of doing business increases as corporate debt increases (Uzea et al., 2014). ...
The financial impact of the COVID-19 pandemic on entire economies has been proven. The current necessity is to determine the level of consequences for distinct industries and sectors. The local lockdowns and travel restrictions shocked the hospitality industry and its performance. Thus, the purpose of this study is to explain the effect of the pandemic on a particular economic sector, specifically NACE I (Accommodation and food service activities), and changes in financial indicators in Slovak circumstances for the period 2016–2021. The study focuses on debt ratios that reflect the financial stability of businesses. Friedman’s test was run to determine how the chosen indebtedness indicators developed over the chosen years. Based on a sample of 321 Slovak companies, statistically significant differences were found. But only the interest coverage ratio was significantly different between the pre-pandemic and pandemic eras, according to the post-hoc tests. In addition, there was a hint of a positive overall transformation in the sector of accommodation and food service activities. The decline of the number of enterprises by total indebtedness from the alarming threshold in 2021 declared this fact. The conclusions implicate that Slovak businesses are becoming more mindful of debt financing and are attempting to reduce the risks of going bankrupt. AcknowledgmentThis research was financially supported by the Slovak Research and Development Agency – Grant Vega 1/0121/20: Research of transfer pricing system as a tool to measure the performance of national and multinational companies in the context of earnings management in conditions of the Slovak Republic and V4 countries and faculty institutional research 1/KE/2022: Analysis of the determinants of indebtedness and profitability of business entities in the European area.
... The majority of frontline workers are employed as money advisers, while others have more specialised roles in relation to mortgage arrears, 13 personal insolvency, 14 administration and helpline advice. There has been little independent or ongoing evaluation of service impact, with the available evidence suggesting that interventions have significant health, wellbeing and money/debt management improvements, albeit militated by persisting structural and socio-economic inequalities which disproportionately affect its predominantly low income client base (Stamp 2011;Boyle 2019). Nonetheless, MABS has been identified as a model of best practice at EU level (Korczak 2004). ...
... Once a statutory route is chosen on an informed basis, money advice support in terms of budgeting, planning and money management appears largely to cease in each of the four models, with matters being handed over to a third party such as an over-indebtedness commission (France), insolvency practitioner (Ireland and the UK) or court appointed administrator or trustee (Germany). Where money advice services do continue to have an input, it is largely confined to low income, low asset cases (UK and Ireland) and to an administrative as opposed to an advocative role, a deficiency highlighted in France and Ireland for example as in need of redress (Gloukoviezoff 2011;Boyle 2019). ...
... Hence where it does occur, it tends to consist of once-off pieces of work by academics and social researchers, often focusing on relatively new clients (Kempson 1995), a notable exception being a longitudinal review of money advice services in the UK (Atfield et al. 2016). Most of the evidence identifiable relates to the impact of money advice services as opposed to debt management systems, although evidence from Ireland suggests that the effects in each instance may not be that dissimilar (Stamp 2011;Boyle 2019). ...
Toward Good Practice: A Review of Money Advice Services and Debt Management Systems in Ireland, the United Kingdom, France and Germany
... Indebtedness does not always have to be a negative factor for a company [51], as it can lead to growth not only in profitability [52] but also in the market value of the firm [53]. However, indebtedness is associated with a greater possibility of financial difficulties [54], debts [55], obtaining a loan from a bank [56], and poor currency on the market [57], which can cause customers and suppliers to mistrust the company. The higher the corporate indebtedness, the higher the risk in business [58]. ...
Debt financing is arguably the most important source of external financing for enterprises and has become popular in recent years. Corporate debt is related to the monitoring of corporate indebtedness, which is a necessary part of evaluating the overall financial performance of an enterprise and will occur if an enterprise does not have enough equity. However, rising indebtedness can be a difficult financial situation for enterprises in the form of default and an inability to meet their emerging liabilities. The main aim of this paper is to perform a debt analysis of enterprises operating in the Visegrad Group countries and subsequently examine whether firm size and legal form have a statistically significant impact on selected indebtedness indicators. Firstly, it was necessary to perform a debt analysis using 10 debt ratios. Subsequently, the nonparametric Kruskal–Wallis test was used to perform a more detailed analysis focused on examining statistically significant differences in individual indebtedness ratios based on firm size and legal form. Bonferroni corrections were applied to detect where stochastic dominance occurred. The Kruskal–Wallis test results reveal statistically significant differences in debt ratios in Visegrad Group countries, confirming the impact of firm size and legal form on calculated debt ratios. Recognizing the impact of several determinants on corporate debt is critical because these firm-specific features may be interpreted as proxies for default probability or the volatility of corporate assets, which may simplify the decision-making processes of creditors and stakeholders.
... Model ini juga sejalan dengan (Lusardi & Mitchell, 2013), (Xiao et al., 2014) (Boyle, 2022;Callegari et al., 2020;Hayhoe et al., 1999;Krumer-Nevo et al., 2017;Pérez-Roa et al., 2022;Rojas, 2023 ...
Buku "Relevansi Debt Management Literacy UKM" merinci bagaimana Usaha Kecil dan Menengah (UKM) di negara berkembang menghadapi tantangan besar dalam memperoleh pembiayaan karena asimetri informasi antara UKM dan lembaga pembiayaan. Penelitian ini menggali teori signaling dan teori perilaku terencana, menyoroti pentingnya literasi manajemen utang dan pengendalian diri dalam menunjang keberhasilan UKM dalam pembayaran utang. Menjabarkan bagaimana teori signaling menjelaskan komunikasi antara pemberi pinjaman dan UKM, yang seringkali mengirim sinyal untuk memvalidasi kelayakan kredit mereka. Fokusnya adalah pada dilema pemberi pinjaman yang menghadapi informasi yang tidak lengkap atau tidak jujur dari UKM, yang dapat mengakibatkan keputusan pembiayaan yang suboptimal. Selanjutnya, buku ini mengaitkan Thoery of Planned Behaviour dengan Financial Behaviour (perilaku keuangan) UKM, memeriksa bagaimana sikap, norma subjektif, dan kontrol perilaku yang dirasakan mempengaruhi keputusan pembiayaan mereka. Diskusi mendalam tentang bagaimana literasi keuangan memengaruhi kemampuan UKM untuk mengelola utang mereka secara efektif. Ditekankan bahwa pengalaman keuangan yang lebih besar, pengetahuan, dan keterampilan manajemen utang dapat memperbaiki perilaku pembayaran utang UKM. Analisis lebih lanjut membahas tantangan dan hambatan yang dihadapi UKM dalam mengakses kredit, termasuk rasa takut penolakan dan kurangnya aset sebagai jaminan. Buku ini mengeksplorasi hubungan antara diversifikasi sumber pendanaan dan stabilitas keuangan UKM, menunjukkan pentingnya manajemen utang yang efektif untuk pertumbuhan dan keberlanjutan bisnis. Terakhir, buku ini mempertimbangkan dampak dari literasi manajemen utang pada keputusan pinjaman UKM dan bagaimana peningkatan pengetahuan dan keterampilan keuangan dapat membantu UKM dalam mengelola kewajiban finansialnya dengan lebih baik. Disajikan temuan bahwa UKM dengan literasi keuangan yang lebih tinggi memiliki kemungkinan lebih besar untuk memenuhi kewajiban pembayaran utangnya dan menghindari gagal bayar. Secara keseluruhan, "Relevansi Debt Management Literacy UKM" menawarkan wawasan yang komprehensif tentang dinamika pembiayaan UKM, menyoroti pentingnya literasi keuangan dalam meningkatkan akses ke pembiayaan dan mengelola utang secara efektif
... This is due to the fact that, typically, individuals who postpone payments and consequently accrue late fees are those with a less robust comprehension of the ramifications of indebtedness. (Boyle, 2022;Callegari et al., 2020;Hayhoe et al., 1999;Krumer-Nevo et al., 2017;Pérez-Roa et al., 2022;Rojas, 2023). In general, financial literacy is very important and Closely associated with consumers, whether it pertains to payment systems,debt or savings (Klapper & Lusardi, 2020). ...
ARTICLE INFO ABSTRACT Several studies highlight the gap between perception and reality in financial literacy. Indicating that while individuals believe they have a good understanding of finance, the reality can be different. This emphasises the importance of objectively evaluating and improving financial literacy. This study aims to determine the level of debt management literacy, as well as its effect on loan repayment of 254 SMEs in Indonesia, the findings suggest that improving Debt Management Literacy (DML) can positively impact Financial Inclusion (FI) and Loan Repayment (LR), can reduce default rates, improve credit scores, financial stability, better financing options, risk mitigation, and effective long-term financial planning. These benefits can contribute to the overall financial health and success of Micro and Small Enterprises.
