What is the relationship between debt and the welfare state? Recent arguments suggest that credit markets fill gaps left by limited social benefits but often rest on thin empirical grounds. This article makes two contributions to this debate by using micro-level panel data and leveraging variation in welfare state generosity across US states and over time. First, it shows that households that experience unemployment borrow significantly more in states where unemployment benefits are low compared to states where benefits are high. A 10-percentage-point decrease in unemployment replacement rates increases debt levels by about 30 per cent, or $5,300. Secondly, the article documents that rising indebtedness in the context of weak social policies has political consequences and increases support for a stronger safety net. One explanation is that voters seek social protection against downstream debt-induced economic risks. These findings suggest that welfare states can play a critical role in mitigating growing indebtedness.

This paper explores the impact of credit constraints on household welfare in Ethiopia. We use a three-wave panel dataset for rural and small-town households to estimate the effects of household borrowing constraints on two alternative indicators of household welfare: consumption expenditure and asset ownership. The presence of a constraint is treated as an endogenous regressor, using an instrumental variable based on Baumol’s theory of contestable markets. We find that credit constraints have a significantly negative effect on both outcomes. These results are robust to several alternative specifications of the model.

Debt has become an essential part of many people's daily lives. This paper develops a new comparative political economy perspective on the relationship between welfare states and household borrowing. I argue that the ways in which welfare states distribute benefits and credit regimes provide access to credit affect how individuals address social risks and, as a consequence, shape patterns of indebtedness. Permissive credit regimes substitute for social policies in limited welfare states, pushing economically disadvantaged groups into debt. Alternatively, credit markets complement social policies in the provision of financial liquidity in comprehensive welfare states, protecting vulnerable groups through government benefits while allowing less-protected affluent groups to borrow money. In restrictive regimes, people instead rely on savings, expenditure cuts, and family support. I test these arguments using an original measure of credit regime permissiveness, cross-national survey data, and full-population administrative records from Denmark and panel data from the United States.

We argue adverse selection has unraveled private markets for financial contracts that mitigate college-going risks. We use survey data on beliefs to quantify the threat of adverse selection in markets for equity contracts and several state-contingent debt contracts. We estimate that a typical college-goer would have to repay $1.64 in present value for every $1 of equity financing to sustain profitable contracts for financiers, more than they are willing to accept. We discuss why moral hazard, biased beliefs, and the availability of outside credit options are less likely to explain the absence of these markets, and discuss the welfare implications.

According to Cognitive Market Research, the global Credit Repair Services market size is USD 6815.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 2.50% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 2726.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 0.7% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 2044.56 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 1567.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 340.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 1.9% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 136.3 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.2% from 2024 to 2031.
The Credit Repair Software held the highest Credit Repair Services market revenue share in 2024.

Market Dynamics of Credit Repair Services Market

Key Drivers of Credit Repair Services Market

Increased Importance of Credit Scores to Increase the Demand Globally

The fact that businesses and financial institutions depend more on credit scores to establish insurance premiums, determine interest rates, and approve loans shows how important credit scores have become. The growing awareness of the substantial influence credit scores have on one's financial prospects and general welfare has increased the need for services focused on enhancing and preserving good credit ratings. This increase in demand is a result of customers taking proactive steps to improve their financial situation, which opens up access to more favorable insurance and borrowing terms and, in turn, increases their prospects and stability.

Financial Difficulties and Errors to Propel Market Growth

Delinquencies or mistakes impact individuals' creditworthiness on credit reports, frequently resulting from personal financial difficulties and economic uncertainty. As a result, there is a rising need for credit repair services meant to address these problems and improve credit status. These services help refute incorrect information, settle disputes with creditors, and create plans to raise credit ratings. By resolving financial challenges and inaccuracies on credit reports, people can improve their creditworthiness, be eligible for better lending conditions, and lessen the blow to their future financial prospects. This pattern emphasizes the value of proactive money management and the assistance that credit repair firms provide in assisting people in overcoming difficult financial situations.

Restraint Factors Of Credit Repair Services Market

Lack of Regulation and Unethical Practices to Limit the Sales

Consumer trust is undermined by unethical activities and a lack of regulation, which poses issues for the credit repair sector. Certain businesses take advantage of gaps in the law to commit dishonesty or participate in fraudulent activities, preying on those looking for help with credit problems. Marketing that is deceptive and con games run by dishonest businesspeople make the issue worse and expose customers to abuse. In addition to damaging the standing of reliable credit repair firms, this oversight gap undermines public trust in the sector. Protecting customers and rebuilding confidence in the credit repair industry need strengthening legal frameworks and upholding moral principles.

Impact of Covid-19 on the Credit Repair Services Market

The COVID-19 outbreak has significantly impacted the market for credit repair services. A growing number of people are experiencing financial troubles due to economic shocks and job losses, which has increased demand for credit repair services. On the other hand, limitations on face-to-face communication and unstable economic conditions have also impacted credit repair businesses. Maintaining service delivery now requires digital technologies and remote work arrangements. Government stimulus programs and regulatory changes intended to ease financial burdens have also impacted market dynamics. The pandemic has highlighted the value of credit restora...

Over the past 13 years, the Government of Indonesia (GOI) has moved from a set of temporary, crisis-driven social assistance initiatives towards a more permanent system of social assistance programs. This background paper aims to provide a brief history of the major developments in the GOI's household-targeted social assistance policy and programs with more limited discussion of supply-side and community social assistance initiatives. The note is organized chronologically with developments in social assistance presented together with information about the economic, political and social contexts in which these developments occurred. Indonesia's economic growth was also associated with substantial declines in the poverty, especially among rural households. The poverty headcount fell from 54.2 million to 34.5 million Indonesians and poverty incidence fell from 41.1 to 17.7 percent. While poverty reduction was not a policy objective in GOI documents until the early 1990s, the GOI's agricultural and rural development strategies and commitment to human capital investment through financing and provision of education and health services also contributed to poverty reduction. Furthermore, the GOI intervened in staple foods markets for the purpose of reducing domestic price volatility and increasing food security. During this era, when individuals or families employed in the informal sector required in-kind or financial assistance, they sought it from extended families, communities, or informal credit markets.

Previous research on educational aspirations and educational decision-making has mostly focused on high-income countries and thus on a relatively homogeneous socio-economic context. However, educational decision-making may be sensitive to contextual factors such as economic deprivation, a dysfunctional welfare state or poor access to credit markets – characteristics shared by most low- and middle-income countries. To better understand how economically disadvantaged individuals in developing countries make their educational choices, we conducted a survey based on a random sample with high school students in the rural department Morazán in El Salvador, a lower middle-income country in Latin America. Our results show that regardless of the social background, almost all students aspire to pursue tertiary education, probably due to the high tertiary degree premium in earnings and the high social benefits. However, the lack of possibilities to finance their studies generally prevents the realisation of these aspirations for lower social background students. While in high-income countries, cost factors are not very important in the decision-making process, the burden of costs explains around 45 percent of the social background effect in El Salvador. Other factors such as academic confidence, expected future economic benefits, parental status maintenance wish, individual risk aversion and time discounting preferences play only a minor role.

Active labour market policies (ALMPs) are government interventions traditionally focused on moving unemployed people into work. As those ultimately in control of the employment opportunities participants are seeking to access, employers are fundamental to ALMP outcomes. However, research and policy relating to ALMP has tended to ignore employers. Focusing on UK ALMP, as enacted through Universal Credit, this research helps to advance knowledge of this topic by focusing on employer perspectives of ALMP and the conditionality that underpins it for unemployed people and workers on a low income. The research explored how ALMP is understood and experienced by UK employers, how it impacts on how businesses are run, and how employment services can work more effectively with employers, leading to better outcomes for individuals and the wider economy.

The UK's main vehicle for ALMP, and flagship policy of recent welfare reforms is Universal Credit (UC). UC is the new working age benefit for those who are either out of work or on a low income. Under UC, social security for unemployed people is conditional on claimants demonstrating work search and other work-related activities. This is underpinned by a 'Work First' approach, emphasising high volumes of applications and fast work re-entry. It also potentially involves the extension of conditionality to those in work, blurring the traditional distinction between social security claimants who are in and outside of the paid labour market .

Aims and objectives The project had four main aims. Through qualitative semi-structured interviews with employers, policymakers and other key stakeholders, this research project: 1. explored how UK ALMP is understood and experienced by employers 2. identified how ALMP impacts UK businesses, including how they recruit, retain and progress their staff (including differences between sectors) 3. explored how the impact of ALMP on employers varies in different low pay sectors 4. explored how the public employment service can work effectively with employers to lead to better employment outcomes for claimants The final project report is available via Related Resources.

Research context: Active labour market policies (ALMPs) are government interventions traditionally focused on moving unemployed people into work. As those ultimately in control of the employment opportunities participants are seeking to access, employers are fundamental to ALMP outcomes (Bredgaard; 2017; Sissons and Green, 2017). However, research and policy relating to ALMP has tended to ignore employers. Focusing on UK ALMP, as enacted through Universal Credit, this research will help to advance knowledge of this topic by focusing on employer perspectives of ALMP and the conditionality that underpins it for unemployed people and workers on a low income. The research will explore how ALMP is understood and experienced by UK employers, how it impacts on how businesses are run, and how employment services can work more effectively with employers, leading to better outcomes for individuals and the wider economy (McCollum, 2012).

The UK's main vehicle for ALMP, and flagship policy of recent welfare reforms is Universal Credit (UC). UC is the new working age benefit for those who are either out of work or on a low income (DWP, 2010). Under UC, social security for unemployed people is conditional on claimants demonstrating work search and other work-related activities. This is underpinned by a 'Work First' approach, emphasising high volumes of applications and fast work re-entry. It also potentially involves the extension of conditionality to those in work, blurring the traditional distinction between social security claimants who are in and outside of the paid labour market (Dwyer and Wright, 2014).

Aims and objectives The project has four main aims. Through qualitative semi-structured interviews with employers, policymakers and other key stakeholders, this research project will: 1. explore how UK ALMP is understood and experienced by employers 2. identify how ALMP impacts UK businesses, including how they recruit, retain and progress their staff (and explore differences between sectors) 3. explore how the impact of ALMP on employers varies in different low pay sectors 4. explore how the public employment service can work effectively with employers to lead to better employment outcomes for claimants

To realise these aims, the project is underpinned by four related objectives: 1. To generate new qualitative data on how ALMP impacts on employers and firm behaviour through consultation with employers, policy makers and other key stakeholders 2. To expand scholarly understanding of ALMP and its impact, beyond a traditional supply side focus on unemployed claimants 3. To identify ways in which public employment services (i.e. Jobcentre Plus and other contracted providers) could work with employers to help Universal Credit claimants enter and progress in work 4. To inform...