STRATEGIES FOR MANAGING PERSONAL DEBTS OF MEMBERS OF THE FARMERS RECONSTRUCTION AND DEVELOPMENT FUND IN PROVINCIAL INTEGRATION GROUP 7, NORTHEASTERN REGION

Abstract

The objectives of this research were to 1) study level of financial skills that affect debt repayment of members of the Farmers Reconstruction and Development Fund in Provincial Integration Group 7, Northeastern Region, and 2) determine the strategies for managing personal debts of the members of the Farmers Reconstruction and Development Fund. The research was divided into 2 phases. Phase 1 was used quantitative methodology. The sample group was 250 farmers derived from multi-stage sampling method. Data were collected through questionnaires. Then they were analyzed using basic statistics and regression analysis. Phase 2 was used quantitative methodology and qualitative methodology. The study was divided into two steps. The first step was drafting the strategy. The target group was 21 experts involved in the management of farmers' debts derived by purposive sampling. Data were collected using a focus group discussion recording form. The analysis was done by using content analysis. The second step was an evaluation of the strategy with 30 people from the target group. Research tools included feasibility, appropriateness, usefulness, and cost-effectiveness assessment. Statistical data were analyzed using percentage, mean, frequency and standard deviation.

The results of that 1) from the study of a level of financial skills that affected debt repayment, it was found that, overall, farmers exhibited moderate financial skills. When analyzed in dimensions, it showed that farmers’ financial attitudes and financial behaviors were at high-level skills while their financial literacy was at a low level. The results from the analysis of regression equations was found that the level of financial skills affected the debt arrears of the Farmers Reconstruction and Development Fund in the opposite direction with a statistically significant at the 0.05 level, and 2) it was found that three strategies could be formulated, consisting of strategy 1: Developing financial literacy, strategy 2: Changing financial behavior and strategy 3: Creating a good financial attitude. When assessing the feasibility, appropriateness, usefulness, and cost-effectiveness of the drafted strategy, it was found that an average of each dimension was more than 3.51 which passed the assessment criteria set forth.