Sandie McHugh

This chapter first reviews research on the psychology of borrowing, beginning with an outline of changes in borrowing over the years. It then draws on Kamleitner and Kirchler's three‐stage model of the borrowing process, and presents theory and research on the determinants of personal borrowing (stage 1), credit choice processes (stage 2), and subsequent repayment strategies (stage 3). The chapter examines the causes and psychological consequences of over‐indebtedness, and also considers the policy implications of the research reviewed. A growing body of research has shown that being in debt can lead to significant psychological detriment, including depression, stress and anxiety. The reviewed research suggests that helping students to understand credit cost measures such as annual percentage rate of interest (APR) may be particularly important. One way to do this would be via the teaching and learning of an approximate APR formula, essentially drawing attention to APR's relation to the average, rather than the initial loan.

The chapter gives a brief background of the foundation of Mass Observation; explaining how Bolton was studied as “Worktown” representing the industrial north of England. It provides details of the 1938 Happiness competition, the letters received, and the subsequent questionnaire. It outlines the background, methodology and processes of the replication of the 1938 Happiness competition by the University of Bolton’s Centre for Worktown Studies in collaboration with The Bolton News in 2014. It provides a summary of the main findings of both 1938 and 2014 surveys and considers the strengths and weaknesses of this method of data collection. An outline of the industrial and social conditions of Bolton in the 1930’s is contrasted with those of the twenty-first century.

The impact on the nature of happiness of technological and social changes from 1938 to 2014 is explored. It outlines the advantages of the “consumer society”, but also the downsides, for some, of problem debt and discontent. The influence of the Internet age on community identification and the greater individualization and importance of leisure is discussed. Reported happiness levels are similar in both periods confirming the Easterlin Paradox. In 2014, happiness may be more materialistic with less inner peace and contentment. Family remains highly valued with chosen friendships replacing “giving to/helping others”. How much is enhanced happiness within the control of the individual or due to circumstances? As the link between health and happiness is recognized should the growth of GNP remain the primary government policy?

This chapter outlines the findings from the Worktown (1938) and Bolton (2014) Happiness data. The frequency of happiness and the role of luck were similar. There were differences between the two databases in the time of the week and the place that residents were happiest. The ranking of the 10 Aspects of Happiness changed with Good Humour and Leisure moving into the top 3, whilst Knowledge and Religion went to lower positions in 2014. Qualitative analysis of happiness letters and comments revealed different categorical frequencies, with contentment and peace of mind being the highest in Worktown and free time activities in 2014 Bolton. The aspects of change and continuity in the perceptions of happiness are explored and possible explanations are discussed.

The editorial introduction summarizes the other chapters in the book. It notes the increasing interest in human happiness in the 21st century with initiatives from the United Nations and other national and international organizations to enhance happiness in the world. European politicians have included the subject in their rhetoric and policies. In Britain the Office of National Statistics was directed to collect data and publish reports. The debate on the relationship between wealth and happiness is introduced. What is happiness? The question of definition is explored supporting a link between happiness and general well-being. How can happiness be measured? These questions are considered with reference to the Mass Observation study in 1938 and that by The University in the town of Bolton in 2014.