Jan 01 2001

Successful Turnarounds from Bad Credit to Good: What We Can Learn from the Borrower’s Experience


The purpose of the research reported here was to examine the experiences of people in financial crisis, from their own point of view. This is critical information for those who hope to design programs that transform people from bad credit to good. Yet, to our knowledge, this is the first time this research has been undertaken. Professor Larry Compeau of Clarkson University conducted the study in cooperation with a credit union in the Southeastern United States that has a successful program for facilitating members’ credit transformations.

Professor Compeau conducted in-depth interviews with members who had achieved turnarounds, and with staff of the credit union running this program. In addition, he conducted a number of in-depth interviews with people from a different part of the country who had experienced financial crises but did not recover from them, and in most cases declared bankruptcy. Professor Compeau employed a cutting-edge technique used for in-depth interviews on highly personal issues, to draw out the full experience of those who had recovered from a serious financial crisis, and those who had not.

Report Number 69