AN EXPLORATORY STUDY ON FACTORS INFLUENCING DEBT- REPAYMENT BEHAVIOUR AMONGST LOW-INCOME FAMILIES IN METHODIST WELFARE SERVICES (MWS) FAMILY DEVELOPMENT PROGRAMME (FDP)

Abstract

This mixed-method exploratory study examines the experiences of low-income families in debts who are under the Family Development Programme (FDP), a debt and savings matching programme started by Methodist Welfare Services (MWS). As the first debt matching programme in Singapore, this paper seeks to understand how such a programme can assist low-income families in repaying their debts. The study involved 16 research participants who took part in the qualitative survey and four families were interviewed further in a semi-structured qualitative interview. The study was based on a wide range of literature that examines socio-demographic, economic, psychological and institutional factors that can influence debt-repayment behaviour. Results from this study reveals the interactions and interplay between these factors in influencing debt-repayment behaviour. More importantly, the findings provide a perspective of how programme implementation can affirm the human dignity. Lastly, this paper discusses the importance of policy in dealing with structural unemployment and low wages that perpetuates the challenge of relative poverty and income inequality in alleviating the problem of debt and poverty.