Debtors Anonymous
Encyclopedia
Debtors Anonymous is a twelve-step program
Twelve-step program
A Twelve-Step Program is a set of guiding principles outlining a course of action for recovery from addiction, compulsion, or other behavioral problems...

 for people who want to stop incurring unsecured debt
Unsecured debt
In finance, unsecured debt refers to any type of debt or general obligation that is not collateralised by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment....

. Collectively they attend more than 500 weekly meetings in nine countries. Those who compulsively incur unsecured debt are said to be engaged in compulsive debting and are known as compulsive debtor
Debtor
A debtor is an entity that owes a debt to someone else. The entity may be an individual, a firm, a government, a company or other legal person. The counterparty is called a creditor...

s.

DA encourages careful record keeping and monitoring of finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...

s—including purchases
Purchasing
Purchasing refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations...

, income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

, and debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...

 payments—to get a clear picture of spending habits. This information is used to develop healthier spending practices, supporting one in keeping a reasonable quality of life
Quality of life
The term quality of life is used to evaluate the general well-being of individuals and societies. The term is used in a wide range of contexts, including the fields of international development, healthcare, and politics. Quality of life should not be confused with the concept of standard of...

 while still repaying debt. Similarly, DA recommends developing plans for the future to increase income.

DA's program is intended to facilitate a progressive personality
Personality psychology
Personality psychology is a branch of psychology that studies personality and individual differences. Its areas of focus include:* Constructing a coherent picture of the individual and his or her major psychological processes...

 change in its members, ultimately transforming their world view
World view
A comprehensive world view is the fundamental cognitive orientation of an individual or society encompassing the entirety of the individual or society's knowledge and point-of-view, including natural philosophy; fundamental, existential, and normative postulates; or themes, values, emotions, and...

s and changing their behaviors. Many DA members only partially accept the ideology of the organization. Parts of DA's program, such as stigmatizing
Social stigma
Social stigma is the severe disapproval of or discontent with a person on the grounds of characteristics that distinguish them from other members of a society.Almost all stigma is based on a person differing from social or cultural norms...

 labels
Labeling theory
Labeling theory is closely related to interactionist and social construction theories. Labeling theory was developed by sociologists during the 1960's. Howard Saul Becker's book entitled Outsiders was extremely influential in the development of this theory and its rise to popularity...

 used to describe members, may actually hinder acceptance
Acceptance
Acceptance is a person's agreement to experience a situation, to follow a process or condition without attempting to change it, protest, or exit....

 of DA's ideology
Ideology
An ideology is a set of ideas that constitutes one's goals, expectations, and actions. An ideology can be thought of as a comprehensive vision, as a way of looking at things , as in common sense and several philosophical tendencies , or a set of ideas proposed by the dominant class of a society to...

.

Development

In 1968 members of Alcoholics Anonymous
Alcoholics Anonymous
Alcoholics Anonymous is an international mutual aid movement which says its "primary purpose is to stay sober and help other alcoholics achieve sobriety." Now claiming more than 2 million members, AA was founded in 1935 by Bill Wilson and Dr. Bob Smith in Akron, Ohio...

 (AA) who believed that their financial difficulties were caused by an addictive
Addiction
Historically, addiction has been defined as physical and psychological dependence on psychoactive substances which cross the blood-brain barrier once ingested, temporarily altering the chemical milieu of the brain.Addiction can also be viewed as a continued involvement with a substance or activity...

 disease not unlike alcoholism
Alcoholism
Alcoholism is a broad term for problems with alcohol, and is generally used to mean compulsive and uncontrolled consumption of alcoholic beverages, usually to the detriment of the drinker's health, personal relationships, and social standing...

 founded an organization named Penny Pinchers, which they later renamed Capital Builders. The founding members believed their financial problems stemmed from an inability to save money, and they practiced making daily deposits to their savings account
Savings account
Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return...

s. Later they recognized their problems were not caused by an inability to save but rather an inability to stay solvent
Solvency
Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term...

.

In early 1971 the group members came to believe that incurring unsecured debt was the threshold of their disease and committed to a rigorous twelve-step approach to prevent incurring further unsecured debt. The original group disbanded and meetings were not consistently held again until 1976, when a group of two or three people began meeting regularly on Wednesdays in the rectory
Rectory
A rectory is the residence, or former residence, of a rector, most often a Christian cleric, but in some cases an academic rector or other person with that title...

 of St. Stephen's Church in New York City. Within a year a second group formed and Debtors Anonymous continued to grow. The first General Service Conference was held in 1987 in the auditorium at Saint Vincent's Catholic Medical Center
Saint Vincent's Catholic Medical Center
Saint Vincent Catholic Medical Centers ' was a healthcare system, anchored by its flagship hospital, St. Vincent's Hospital Manhattan, locally referred to as "St. Vincent's". St. Vincent's was founded in 1849 and closed in 2010...

 in Manhattan. there were 512 groups meeting worldwide.

DA assiduously adapted AA's format, making only five changes to AA's Twelve Steps and Twelve Traditions
Twelve Traditions
The Twelve Traditions of twelve-step programs provide guidelines for relationships between the twelve-step groups, members, other groups, the global fellowship, and society at large. Questions of finance, public relations, donations, and purpose are addressed in the Traditions...

: "D.A." and "Debtors Anonymous" replaces "A.A." and "Alcoholics Anonymous", "debt" replaces "alcoholism", "compulsive debtors" replaces "alcoholics", "incurring unsecured debt" replaces "drinking", and "debtor" replaces "alcoholic." In 2002 DA published a list of 12 promises similar to the 12 promises appearing on pages 83–84 of Alcoholics Anonymous. DA's original literature includes the Twelve Tools of Debtors Anonymous, a list of practices to recovery from compulsive debting.

Membership

Debtors Anonymous is fundamentally an organization to facilitate recovery from "compulsive debting." Compulsive debting is a neologism described variously in DA literature as a disorder, progressive illness
Progressive illness
The term progressive illness describes the course of an illness that gradually progresses and changes mode, generally to the worse. In contrast, non-progressive or chronic illnesses are relatively constant.-Examples:...

, and a disease
Disease model of addiction
The disease model of addiction describes an addiction as a lifelong disease involving biologic and environmental sources of origin. The traditional medical model of disease requires only that an abnormal condition be present that causes discomfort, dysfunction, or distress to the individual...

. As such, compulsive debting cannot be cured, although it can be arrested. Compulsive debtors are those who cannot control their debt, as a consequence their debt causes growing and continuing problems in their lives. Compulsive debting is also an umbrella term
Umbrella term
An umbrella term is a word that provides a superset or grouping of concepts that all fall under a single common category. Umbrella term is also called a hypernym. For example, cryptology is an umbrella term that encompasses cryptography and cryptanalysis, among other fields...

 encompassing many different types of behavior from "incurring unsecured debt to compulsive shopping, from grandiose thinking to deprivation mentality." Members must decide for themselves whether or not they are compulsive debtors. To help them with the decision, DA provides a 15-item questionnaire
Questionnaire
A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. Although they are often designed for statistical analysis of the responses, this is not always the case...

 (most compulsive debtors will answer yes to eight or more of the questions) and a list of 12 signs of compulsive debting. An ethnographic
Ethnography
Ethnography is a qualitative method aimed to learn and understand cultural phenomena which reflect the knowledge and system of meanings guiding the life of a cultural group...

 study of DA members found they attributed the causes of compulsive debting to family maladjustment
Dysfunctional family
A dysfunctional family is a family in which conflict, misbehavior, and often abuse on the part of individual members occur continually and regularly, leading other members to accommodate such actions. Children sometimes grow up in such families with the understanding that such an arrangement is...

 and a culture that constantly pressures people to spend money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...

.

DA members may identify themselves additionally—or more specifically—as compulsive shoppers or spenders, codependent debtors or compulsive underearners. Compulsive spending is a symptom associated with compulsive debting. Spending money to one's detriment is compulsive spending. Spending money on particular goods or services after making a decision not to, or having a desire not to, is also compulsive spending. Compulsive spending is often done to avoid uncomfortable feeling
Feeling
Feeling is the nominalization of the verb to feel. The word was first used in the English language to describe the physical sensation of touch through either experience or perception. The word is also used to describe experiences, other than the physical sensation of touch, such as "a feeling of...

s. DA provides a 30-item questionnaire to help people determine if they are spending compulsively, each item is a sign of compulsive spending. Answering yes to three or more of these questions indicates compulsive spending. Although compulsive spenders may not actually be in debt, if they have a desire to avoid incurring unsecured debt, they are welcome in DA. Codependent debtors incur unsecured debt to pay for another persons' compulsive spending.

Underearners are people with viable skills who are psychologically incapable of earning enough money to support themselves without incurring unsecured debt. DA provides a list of 12 signs that are symptomatic of compulsive underearning. Underearning can lead to become a "compulsive pauper
Pauperism
Pauperism is a term meaning poverty or generally the state of being poor, but in English usage particularly the condition of being a "pauper", i.e. in receipt of relief administered under the poor law...

," a term describing people who are consistently broke and in financial crisis. A related term, "financial anorexia," describes "someone who takes inordinate amounts of pride in having few financial needs and is more comfortable living in deprivation." Financial anorexics, while they may find it difficult to spend money on themselves, are not necessarily underearning. Although compulsive underearners may not actually be in debt, if they have a desire to avoid incurring unsecured debt, they are welcome in DA.

The current American Psychiatric Association
American Psychiatric Association
The American Psychiatric Association is the main professional organization of psychiatrists and trainee psychiatrists in the United States, and the most influential worldwide. Its some 38,000 members are mainly American but some are international...

's diagnostic manual (DSM-IV-TR
Diagnostic and Statistical Manual of Mental Disorders
The Diagnostic and Statistical Manual of Mental Disorders is published by the American Psychiatric Association and provides a common language and standard criteria for the classification of mental disorders...

) does not consider indebtedness to be a disease, and does not have a specific category for spending-related issues. It does, however, contain a category for Impulse Control Disorders Not Otherwise Specified, to diagnose impulse control problems
Impulse control disorder
Impulse control disorder is a set of psychiatric disorders including intermittent explosive disorder, kleptomania, pathological gambling, pyromania , and three body-focused repetitive or compulsive behaviors of trichotillomania , onychophagia and dermatillomania...

 that are not currently in the manual. This category is used to diagnose compulsive buying disorder
Compulsive buying disorder
Compulsive buying disorder is characterized by an obsession with shopping and buying behavior that causes adverse consequences. Most persons with CBD meet the criteria for an axis II disorder....

, a condition similar to compulsive debting, which may be included in the next edition of the diagnostic manual (DSM-5
DSM-5
The next edition of the American Psychiatric Association's Diagnostic and Statistical Manual of Mental Disorders , commonly called DSM-5 , is currently in consultation, planning and preparation...

).

Concepts

The phrase "terminal vagueness" describes a characteristic of compulsive debtors, a systematic avoidance of monitoring finances–including avoiding communication with creditor
Creditor
A creditor is a party that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property or...

s–leading to an overestimation or underestimation of account balance
Balance (accounting)
In banking and accountancy, the outstanding balance is the amount of money owed, , that remains in a deposit account at a given date, after all past remittances, payments and withdrawal have been accounted for. It can be positive or negative ....

s. An overestimation may result in incurring unsecured debt. "Clarity" is the opposite of vagueness, requiring a clear picture of how much money one has and owes, at any given time. DA encourages "awareness" of the cultural pervasiveness of debt and overspending
Overspending
Overspending is spending more money than one can afford. It is a common problem when easy credit is available. This can also be called 'investing' in the public sector when infrastructure payments exceed actual calculated cost.-Causes:...

. DA suggests members stay aware of manipulative advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...

 tactics as well as thoughts and feelings that trigger their desire to spend money.

Excessive preoccupation with indebtedness can lead to both "emotional indebtedness" and "self-debting." Self-debting is the inability to identify or fulfill personal needs because of such preoccupations, whereas emotional indebtedness is the accompanying stress
Stress (biology)
Stress is a term in psychology and biology, borrowed from physics and engineering and first used in the biological context in the 1930s, which has in more recent decades become commonly used in popular parlance...

, anxiety
Anxiety
Anxiety is a psychological and physiological state characterized by somatic, emotional, cognitive, and behavioral components. The root meaning of the word anxiety is 'to vex or trouble'; in either presence or absence of psychological stress, anxiety can create feelings of fear, worry, uneasiness,...

, feelings of hopelessness or despair, and even suicidal ideation
Suicidal ideation
Suicidal ideation is a common medical term for thoughts about suicide, which may be as detailed as a formulated plan, without the suicidal act itself. Although most people who undergo suicidal ideation do not commit suicide, some go on to make suicide attempts...

. Self-debting manifests in various ways such as taking drastic measures to hide evidence of problems with money or debt, paying creditors to the detriment of one's needs, or even spending excessive amounts of time managing finances.

"Abstinence" in DA is abstaining from incurring any new unsecured debt
Unsecured debt
In finance, unsecured debt refers to any type of debt or general obligation that is not collateralised by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment....

, a strict definition that includes not paying bill
Bill (payment)
A bill or invoice is a document requesting payment for an order previously supplied. Presentation of a bill is common practice on the part of credit card companies, utilities, and other service providers...

s when due, borrowing money from a family member or friend without collateral
Collateral (finance)
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation...

, credit card debt
Credit card debt
Credit card debt is an example of unsecured consumer debt, accessed through credit cards.Debt results when a client of a credit card company purchases an item or service through the card system...

 and other unsecured loans. If a member has abstained from incurring unsecured debt for a day, he or she is "solvent" for that day. Solvency, in this sense, is a neologism differing from the common definition of solvency
Solvency
Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term...

 (the degree to which asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...

s exceeds liabilities).

A belief in an "abundant universe" underlines much of the DA program. Competition is learned from, but not feared, as there are enough resources for everyone. This perspective counters deprivation thinking that accompanies compulsive debting, overspending, and underearning.

DA members may be vague or unfocused about their goal
Goal
A goal is an objective, or a projected computation of affairs, that a person or a system plans or intends to achieve.Goal, GOAL or G.O.A.L may also refer to:Sport...

s in life. For this reason, DA encourages members to develop "vision," the ability to form a clear and specific picture of what they want to do in life. Visions are discovered by abstaining from incurring unsecured debt, following the Twelve Steps and using the Twelve Tools. Ignoring one's vision is similar to self-debting, it may result in physical or emotional distress, or preoccupation with other people's lives rather than focusing on oneself.

Spending records and spending plans

"Keeping numbers" is a daily practice that requires recording each cent
Cent (currency)
In many national currencies, the cent is a monetary unit that equals 1⁄100 of the basic monetary unit. Etymologically, the word cent derives from the Latin word "centum" meaning hundred. Cent also refers to a coin which is worth one cent....

 owed, spent and earned, including recording any part of a debt that has been paid. Members use different methods to keep their numbers, a simple approach is to carry a small notebook and record numbers in it daily. Daily records are used to create monthly spending records with income and expenditures separated in to specific categories (e.g. rent, groceries, phone, entertainment, etc.). The purpose of these records is to increase clarity, cutting through any denial
Denial
Denial is a defense mechanism postulated by Sigmund Freud, in which a person is faced with a fact that is too uncomfortable to accept and rejects it instead, insisting that it is not true despite what may be overwhelming evidence.The subject may use:* simple denial: deny the reality of the...

 about how much money is being earned and spent. A detailed spending record will show values
Value (personal and cultural)
A personal or cultural value is an absolute or relative ethical value, the assumption of which can be the basis for ethical action. A value system is a set of consistent values and measures. A principle value is a foundation upon which other values and measures of integrity are based...

, habit
Habit (psychology)
Habits are routines of behavior that are repeated regularly and tend to occur subconsciously. Habitual behavior often goes unnoticed in persons exhibiting it, because a person does not need to engage in self-analysis when undertaking routine tasks...

s and responsibilities.

Spending records are used to create spending plans. A spending plan is essentially a list of all goods and services to buy in a given month. Members regularly review their spending plans and assess whether items and amounts in the plan are reasonable. The spending plan puts the member's needs ahead of the creditors and should not cause one to incur unsecured debt. Spending plans should include categories for income and debt repayment. Unless one is having trouble meeting very basic needs, it should also include a category for savings.

Accompanying a "real" spending plan is an "ideal" spending plan, detailing what one's finances would look like in an ideal universe, how much money one would earn, and how it would be spent. The ideal spending plan focuses efforts on increasing income and following a vision for the future. DA avoids using the term budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...

, as it's connotation may imply rigid categories. A spending plan is designed such that one has the best possible life under their present financial circumstances. Spending plans are flexible and convey that there are options, that one chooses how to spend money.

Action plans

DA encourages members, after several weeks participation, to organize "pressure relief meetings." In these meetings, a newer member invites two veteran members (with at least 90 days of abstinence, typically a male and a female) to review his or her financial records in detail and give practical advice. These occur outside of regular meetings, and are a way for members to receive suggestions from each other. The member organizing the group typically brings his or her spending records, and a list of issues that he or she would like assistance with.

"Action plans" are developed during pressure relief meetings based on the suggestions of the other members, a spending plan may also be developed or modified. Actions plans are lists of specific actions
Action theory (philosophy)
Action theory is an area in philosophy concerned with theories about the processes causing willful human bodily movements of more or less complex kind. This area of thought has attracted the strong interest of philosophers ever since Aristotle's Nicomachean Ethics...

 to resolve debts and improve one's financial situation. Members organize pressure relief groups about once a month. In times of crisis, however, they may hold them more often.

Debt repayment plans

Practicing the Fourth Step of the DA's Twelve Steps includes not only a moral inventory of personal characteristics but also an inventory of personal financial
Personal finance
Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future...

 history including a list of current outstanding debts. Similarly, the Ninth Step includes monetary debt repayment. Following the language of the Ninth Step, however, the payment schedule
Payment schedule
The payment schedule of financial instruments defines the dates at which payments are made by one party to another on for example a bond or derivative...

 should not injure the debtor or the creditor. The goal in repaying creditors is to do so while living well. DA members find their ability to pay their creditors improves when they take care of themselves. Payments to creditors should be consistent and manageable. In this way, members are able to offer detailed rationale for their debt repayment schedule, allowing for empowered and functional negotiation with creditors. In this spirit, a certain amount of money is allocated for debt repayment each month whenever possible.

One might begin making a debt repayment plan by categorizing secured and unsecured debt, including the name of the creditor, the total amount owed, when the amount will be paid off, and the current monthly payment. For each debt one would list the current balance, finance charge
Finance charge
In United States law, a finance charge is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit. It includes not only interest but other charges as well, such as financial transaction fees...

 per month, the minimum payment
Payment
A payment is the transfer of wealth from one party to another. A payment is usually made in exchange for the provision of goods, services or both, or to fulfill a legal obligation....

 per month, and include a blank column for the "actual" payment. The amount of the actual payment would be determined from one's spending plan, after subtracting necessary expense
Expense
In common usage, an expense or expenditure is an outflow of money to another person or group to pay for an item or service, or for a category of costs. For a tenant, rent is an expense. For students or parents, tuition is an expense. Buying food, clothing, furniture or an automobile is often...

s and the amount of money required to support a reasonable quality of life. This amount would then be divided up among the creditors. Ideally, the payment to each creditor is proportional
Proportional (fair division)
Proportional division or simple fair division is the original and simplest problem in fair division. Fair division problems are also called cake-cutting problems. A proportional division of a cake between N people would ensure each of them got at least 1/N of the cake by their own valuation...

 (based on the amount of money owed to the creditor divided by the total liabilities). Creditors should not be given special treatment because they harass a debtor with greater frequency than other creditors. One may, however, give preference to creditors charging higher interest rates, threatening legal action
Legal threat
A legal threat is a statement by a party that it intends to take legal action on another party, generally accompanied by a demand that the other party take an action demanded by the first party or refrain from taking or continuing actions objected to by the demanding party.-Nature of legal...

, or who are friends or family members.

DA recommends recording each payment made to a creditor, noting the original amount of the debt, the date the payment was made, the amount of the payment, and the remaining balance. Further, DA advises keeping a record of retired debts to record the date each debt was fully paid.

Although it may conflict with cultural norms, DA recommends taking a debt moratorium
Debt moratorium
A debt moratorium is a delay in the payment of debts or obligations. The term is generally used to refer to acts by national governments. A moratory law is usually passed in some special period of political or commercial stress; for instance, on several occasions during the Franco-Prussian War,...

 when a debtor cannot put his or her needs first and continue to making debt payments. Before taking a debt moratorium, DA suggests checking with one's sponsor, pressure relief group, and to contact one's creditors to explain the situation. If a creditor threatens to take legal action under these circumstances DA recommends seeking professional assistance or revising the moratorium.

Changes in world view

Self-help groups, including DA, urge members to change their world view
World view
A comprehensive world view is the fundamental cognitive orientation of an individual or society encompassing the entirety of the individual or society's knowledge and point-of-view, including natural philosophy; fundamental, existential, and normative postulates; or themes, values, emotions, and...

. It is critically important for self-help groups
Support group
In a support group, members provide each other with various types of help, usually nonprofessional and nonmaterial, for a particular shared, usually burdensome, characteristic...

 to ease this process for their members as changes in world view are generally accompanied by significant behavioral changes. For example, the pamphlet Debtors Anonymous answers "How Does a Person Get Solvent Through the D.A. Program?" by explaining that DA brings about a "progressive personality change" within the member. This change is accomplished through faith
Faith
Faith is confidence or trust in a person or thing, or a belief that is not based on proof. In religion, faith is a belief in a transcendent reality, a religious teacher, a set of teachings or a Supreme Being. Generally speaking, it is offered as a means by which the truth of the proposition,...

 in, and understanding of, DA's Twelve Steps.

Using convenience and snowball sampling
Snowball sampling
In sociology and statistics research, snowball sampling is a non-probability sampling technique where existing study subjects recruit future subjects from among their acquaintances. Thus the sample group appears to grow like a rolling snowball...

 sociologist Terrell A. Hayes found and surveyed 46 DA members from July 1993 to June 1995. 42 of the members surveyed were attending meetings in the Eastern United States
Eastern United States
The Eastern United States, the American East, or simply the East is traditionally defined as the states east of the Mississippi River. The first two tiers of states west of the Mississippi have traditionally been considered part of the West, but can be included in the East today; usually in...

, the remaining four attended meetings in Austin, Texas
Austin, Texas
Austin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...

. An analysis of the data Hayes collected revealed specific parts of DA hindered acceptance of DA's overall ideology. These included: labeling
Labelling
Labelling or labeling is describing someone or something in a word or short phrase. For example, describing someone who has broken a law as a criminal. Labelling theory is a theory in sociology which ascribes labelling of people to control and identification of deviant behavior.It has been argued...

, intergroup and intragroup differences, lack of a clear position on bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....

 and debt-shifting and contradictory information on what literature DA groups should use.

Labeling

Hayes performed a qualitative analysis
Qualitative research
Qualitative research is a method of inquiry employed in many different academic disciplines, traditionally in the social sciences, but also in market research and further contexts. Qualitative researchers aim to gather an in-depth understanding of human behavior and the reasons that govern such...

 of survey results in an attempt to understand how labeling theory
Labeling theory
Labeling theory is closely related to interactionist and social construction theories. Labeling theory was developed by sociologists during the 1960's. Howard Saul Becker's book entitled Outsiders was extremely influential in the development of this theory and its rise to popularity...

 applies to the stigma
Social stigma
Social stigma is the severe disapproval of or discontent with a person on the grounds of characteristics that distinguish them from other members of a society.Almost all stigma is based on a person differing from social or cultural norms...

 of indebtedness, to investigate the process members went through to identify themselves as compulsive debtors and to seek help in DA. The processes involved labeling of members by other people (social labeling), and the members labeling themselves (self-labeling), as people who have a problem with money.

Social labeling and self-labeling were related to changes in self-awareness
Self-awareness
Self-awareness is the capacity for introspection and the ability to reconcile oneself as an individual separate from the environment and other individuals...

. This process, in the majority of cases, gradually led the members studied to seek help in DA and continued while participating DA. Hayes distinguished between three levels of self-awareness. The first two, vague self-awareness and heightened self-awareness, correspond to the precontemplative and contemplative Stages of Change in the Transtheoretical Model
Transtheoretical Model
The Transtheoretical Model of Behavior Change assesses an individual's readiness to act on a new healthier behavior, and provides strategies, or processes of change to guide the individual through the stages of change to action and maintenance....

. The most advanced of the three, focused self-awareness, is characterized by an awakening in which the member began to contemplate the true extent of his or her problem.

The levels of self-awareness are related to three types of acceptance regarding labels used in DA. Hayes described superficial acceptance as a kind of mimicking the labeling of others without internalizing
Internalization
Internalization has different definitions depending on the field that the term is used in. Internalization is the opposite of externalization.- General :...

 the label as part of one's identity
Identity (social science)
Identity is a term used to describe a person's conception and expression of their individuality or group affiliations . The term is used more specifically in psychology and sociology, and is given a great deal of attention in social psychology...

. Superficial acceptance occurs with either vague or heightened self-awareness. Profound acceptance, in contrast, occurs when a member truly believes a label in DA is an accurate description of who he or she really is and entails an acquisition of a social identity
Social identity
A social identity is the portion of an individual's self-concept derived from perceived membership in a relevant social group. As originally formulated by Henri Tajfel and John Turner in the 1970s and 80s, social identity theory introduced the concept of a social identity as a way in which to...

. Those with a profound level of acceptance are most likely to strictly follow DA ideology. The third kind, tailored acceptance, reflects more of an investment in a personal identity rather than a social identity
Social identity
A social identity is the portion of an individual's self-concept derived from perceived membership in a relevant social group. As originally formulated by Henri Tajfel and John Turner in the 1970s and 80s, social identity theory introduced the concept of a social identity as a way in which to...

, replacing a group-derived label with a more personalized one. Acceptance of a social label at any level was not found to be a prerequisite for seeking help. People may seek help in DA even if they believe they do not have a money-related problem, especially if they believe they have no other choice.

Stigmatization of indebtedness was related to experiences of shame
Shame
Shame is, variously, an affect, emotion, cognition, state, or condition. The roots of the word shame are thought to derive from an older word meaning to cover; as such, covering oneself, literally or figuratively, is a natural expression of shame....

 among indebted people. Labeling a person as having a problem with debt therefore exposes them to shame. Further, Hayes found that labeling is a pervasive practice in twelve-step groups. Pointing out, for example, that the First Step in DA requires one to admit powerlessness over debt. At the beginning of meetings members will often introduce themselves with their first name and the problem that brought them to DA. These admissions, may cause the onset of shame, even if it is not consciously acknowledged. This effect may be more pronounced in women and less in men. Women are more likely than men to discuss money problems with others, thereby creating opportunities to be labeled. Women were also found to be twice as more likely than men to experience shame through self-labeling. Women, however, were less likely to have been coerced in to treatment than men.

Law Professor A. Michele Dickerson suggested that something like Debtors Anonymous may be a useful addition to debtor education
Credit counseling
Credit counseling is a process that involves offering education to consumers about how to avoid incurring debts that cannot be repaid through establishing an effective Debt Management Plan and Budget...

 precisely because it would add a guilt-based component to the curriculum. The stigmatization would, Dickerson argues, change the debtor's economic philosophy and reduce the likelihood of impulse buying
Impulse purchase
An impulse purchase or impulse buy is an unplanned decision to buy a product or service, made just before a purchase. One who tends to make such purchases is referred to as an impulse purchaser or impulse buyer...

. Mental health professional
Mental health professional
A mental health professional is a health care practitioner who offers services for the purpose of improving an individual's mental health or to treat mental illness. This broad category includes psychiatrists, clinical psychologists, clinical social workers, psychiatric nurses, mental health...

s find, however, that DA participation reduces shame.

Intergroup and intragroup differences

DA's pamphlet Meetings states "regular attendance at meetings is an important part of recovery–it is vital for compulsive debtors–and especially for newcomers." Intergroup and intragroup differences (differences between DA meetings and DA members at the same meeting) can hinder one in adopting a new world view. Recognition of individual differences
Individual differences psychology
The science of psychology studies people at three levels of focus captured by the well-known quotation: “Every man is in certain respects like all other men, like some other men, like no other man" ....

, specifically that some members are better role model
Role model
The term role model generally means any "person who serves as an example, whose behaviour is emulated by others".The term first appeared in Robert K. Merton's socialization research of medical students...

s than others and the inability to identify with experiences of other members, interferes with the world view transformation process.

As DA's practices are only suggested and not required, one may pick and choose which parts of DA to adhere to or follow. This approach, however, is tolerated to different degrees within different groups. A group's rigidity or flexibility related to DA's suggested practices may hinder identification with the group.

Bankruptcy and debt-shifting

DA's pamphlet, Debt Payment, explains that bankruptcy is an "outside issue," an issue on which DA has no opinion. The pamphlet elaborates, however, that some DA members found bankruptcy only provided a "quick fix" and did not correct the underlying issues causing them to incur unsecured debt. The pamphlet also notes other DA members believe bankruptcy is a proper course of action in some situations. Debt-shifting is the practice of transferring debt
Balance transfer
A balance transfer is the transfer of the balance in an account to another account, often held at another institution.-Types of balance transfers:...

 from one creditor to another in to get a lower interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...

 or otherwise make it easier to repay the debt. Debt-shifting is not discussed in official DA literature, although it is discussed in a book largely based on DA principles, How To Get Out Of Debt, Stay Out of Debt & Live Prosperously. Because DA does not take an official position on bankruptcy and debt-shifting, some groups take stronger positions on these topics than others, this can alienate potential members.

Outside sources

Official DA literature is either approved by the DA General Service Board (GSB) or by vote at a DA conference, based on whether it is service literature (related to the functioning of DA groups) or recovery literature (all other DA literature). Such literature is "conference-approved." DA publishes one book, A Currency of Hope, and several pamphlet
Pamphlet
A pamphlet is an unbound booklet . It may consist of a single sheet of paper that is printed on both sides and folded in half, in thirds, or in fourths , or it may consist of a few pages that are folded in half and saddle stapled at the crease to make a simple book...

s. A Currency of Hope, includes DA's adaptations of the Twelve Steps and Twelve Traditions
Twelve Traditions
The Twelve Traditions of twelve-step programs provide guidelines for relationships between the twelve-step groups, members, other groups, the global fellowship, and society at large. Questions of finance, public relations, donations, and purpose are addressed in the Traditions...

, a description of compulsive debting, a brief history of DA, and 38 stories written by DA members explaining how DA has affected their lives. DA is current working on 18 new pieces of literature, including three books.

In addition to DA literature, DA suggests studying AA literature to gain a better understanding of addictive diseases
Disease model of addiction
The disease model of addiction describes an addiction as a lifelong disease involving biologic and environmental sources of origin. The traditional medical model of disease requires only that an abnormal condition be present that causes discomfort, dysfunction, or distress to the individual...

. Specifically, DA endorses the use of the Twelve Steps and Twelve Traditions and Alcoholics Anonymous (also known as the "Big Book"). DA's pamphlet on the use of AA literature states that DA does not endorse any literature except what has been conference-approved. The pamphlet goes on to say, however, that DA's program encourages the use of outside sources. The use of unapproved literature in DA groups, such as How To Get Out Of Debt, Stay Out of Debt & Live Prosperously, can cause conflict even though DA encourages to use of outside sources.

Parallel organizations

Debtors Anonymous groups, independent of those all ready meeting in New York, were formed in the late 1970s by the National Council of Negro Women
National Council of Negro Women
The National Council of Negro Women is a non-profit organization with the mission to advance the opportunities and the quality of life for African American women, their families and communities. NCNW fulfills this mission through research, advocacy, national and community based services and...

 (NCNW) in New York City. They began as a group of 37 participants who had attended credit education classes at the NCNW offices. The NCNW Debtors Anonymous members had four goals: (1) Develop individual budgets and report regularly at group meetings on progress and problems; (2) Select and work with a buddy for mutual support and as a safeguard against spending urges; (3) Educate themselves and fellow members about credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...

 costs, consumer protection
Consumer protection
Consumer protection laws designed to ensure fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional...

 laws, and the best prices of goods and services; (4) Set long-term goals and stick with them. Meetings were designed to share information on where to get common products at the best price (clothes
Clothing
Clothing refers to any covering for the human body that is worn. The wearing of clothing is exclusively a human characteristic and is a feature of nearly all human societies...

, home furnishings
Furniture
Furniture is the mass noun for the movable objects intended to support various human activities such as seating and sleeping in beds, to hold objects at a convenient height for work using horizontal surfaces above the ground, or to store things...

, small appliance
Small appliance
Small appliance refers to a class of home appliances that are portable or semi-portable or which are used on tabletops, countertops, or other platforms in the United States of America...

s, food
Food
Food is any substance consumed to provide nutritional support for the body. It is usually of plant or animal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals...

, etc.). Group sharing would usually begin after a member gave a short presentation on a topic she had researched for the meeting. Additional groups were formed supported with grant
Grant (money)
Grants are funds disbursed by one party , often a Government Department, Corporation, Foundation or Trust, to a recipient, often a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal...

s from Chase Manhattan Bank
Chase (bank)
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...

 and the United States Department of Education
United States Department of Education
The United States Department of Education, also referred to as ED or the ED for Education Department, is a Cabinet-level department of the United States government...

's consumer education unit. there were chapters in nine major US cities.

In response to the 1994 economic crisis in Mexico
1994 economic crisis in Mexico
The 1994 Economic Crisis in Mexico, widely known as the Mexican peso crisis, was caused by the sudden devaluation of the Mexican peso in December 1994....

 an anti-government organization naming itself the National Association of Debtors Anonymous formed. Later, this group merged with El Barzón
El Barzón
El Barzón is a movement of low and low-middle class private business and farming interests in Mexico.A Barzón, in terms of agriculture, is the yoke-ring to which a rope or chain is attached to pull a farm plow; a hitch-ring, connecting-ring, a pull-ring. The name comes from a Mexican revolutionary...

 (a movement of land-owning farmers against the Mexican government).

See also

  • Compulsive buying disorder
    Compulsive buying disorder
    Compulsive buying disorder is characterized by an obsession with shopping and buying behavior that causes adverse consequences. Most persons with CBD meet the criteria for an axis II disorder....

  • List of twelve-step groups
  • Oniomania
    Oniomania
    Oniomania is the technical term for the compulsive desire to shop, more commonly referred to as compulsive shopping, shopping addiction, shopaholism, compulsive buying or CB...

  • Outline of finance
    Outline of finance
    The following outline is provided as an overview of and topical guide to finance:Finance – addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects.- Overview :The word...

  • Underemployment
    Underemployment
    Underemployment refers to an employment situation that is insufficient in some important way for the worker, relative to a standard. Examples include holding a part-time job despite desiring full-time work, and overqualification, where the employee has education, experience, or skills beyond the...


External links

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