1. Is debt relief rehabilitative?
An evaluation of debt relieved persons’ health, quality of life and personal finances three years after conducted debt relief.
Richard Ahlström, Ph.D.
Department of Health –and Welfare Studies
Malmö University
Sweden

2. Previous research –The Nordic countries
Nykänen et al, 2004 (Finland)
Poppe, 2010 (Norway)
Ahlström & Savemark, 2010 (Sweden)
Sandvall, 2011 (Sweden)
Ahlström, Edström & Savemark, 2014 (Sweden)

3. ThE present study
Aim
The purpose of the current study is to survey the lives of people during and after debt relief in terms of health, life quality, finances and the experience itself of life during debt relief, to thereby be able to evaluate the level of any socio-economic, physical and mental rehabilitation. A special focus is also placed on the significance which the municipal Budget and debt advisory service (BUS) plays for over-indebted persons throughout the process from the early contacts until the time after the debt relief has been completed.

4. Method
The study includes persons (n=226) who underwent debt relief during the period The study is of a quantitative, descriptive nature and is based on postal survey material containing originally eighty questions, which were mainly designed by the authors. However, some of the questions are based on three internationally well-established measurement instruments for health;
1. Short Form-36, 2. Paykels’ Suicide Scale and 3. The Hopelessness Scale. The survey was divided in the question areas; Background and current living conditions, the significance of contact with the municipality's Budget and debt advisory service, personal finances, the view of the future, financial exclusion, life quality and health.

5. Results – three years after completion of debt relief
Health has not improved
Increase of sudden deaths
High suicide rates
Social networking is still hampered
No return to labour market
The depletion of financial resources is not restored

6. Perceptions of assistance from the Budget and debt advisory service
The majority, almost 79% of the research participants report that the contact with the municipal Budget and debt advisory service resulted in a solution of the debt problems, almost 76% state that the support was highly significant for self-confidence and roughly 72% believe that the support created orderliness in terms of the financial situation. Slightly less than 50% also state that they have had the stamina to move on (42.3%) and felt more at ease (46.2 %) from the help they received from the Budget and debt advisory service during the debt relief period.

7. Were those granted debt relief rehabilitated?
Many results in the study indicate that the standard of living three years after the conducted debt relief is unchanged compared to the period before, while the physical and mental health has even deteriorated. Can you then conclude that the Debt Relief Act in this population has been rehabilitative, i.e. that heavily indebted persons had the opportunity to solve their financial problems and have thereby obtained a more tolerable life which is more profitable to society? Based on the health status and the financial and social conditions which individuals in the investigation are facing three years after undergoing debt relief, the answer can hardly be yes. The analysis of responses of the research participants raise many questions about what successful and rehabilitative debt relief entails for both debtors but also for society as a whole.