Experimental Design Details
The experiment examines how financial offers influence repayment decisions and long-term financial planning. Participants begin by completing a survey that collects background information, such as age, financial literacy, and discretionary spending habits. These variables
are used as controls in the analysis to account for individual differences. To ensure a consistent understanding of the task, participants must answer comprehension questions about the experimental setup.
The primary task involves participants allocating a fixed monthly budget between debt repayment and savings toward a future goal, such as a mortgage downpayment. Savings accrue interest at a fixed rate, encouraging participants to make efficient allocation decisions.
This task simulates real-world trade-offs between short-term benefits, such as reduced monthly repayments, and long-term savings growth.
Participants can choose from four debt restructuring options, one of which maintains the status quo. The four options differ in terms of the repayment term and monthly repayment amounts. Before selecting one of the options, participants are divided into three groups. In
the first group, participants have the option to decline the debt restructuring options and prematurely end the experiment. In the second group, participants are first asked about their preferences (e.g., is it important for you to keep the repayment amount constant?). Based on
their responses, the option that best matches the participant's preferences is highlighted. In the third group, the control group, participants are required to directly choose one of the four options. The primary objective is to identify and investigate the influence of two key real-
world factors on decision-making. On one hand, the possibility of not accepting the consultation offer, and on the other hand, the impact of a consultation that asks participants about their preferences. In a follow-up decision, participants can customize various aspects of their loan based on their initial choice (e.g., if the option with a high payout amount was selected, they can adjust the payout amount, with all other loan conditions changing accordingly). The exit survey includes questions on financial literacy, risk tolerance, and time preferences,
offering deeper insights into how individual traits influence decision-making. Participants are rewarded based on their total accumulated downpayment. The rewards are distributed linearly, where higher downpayments earn proportionally higher rewards. The incentivized
structure encourages participants to take the task seriously.