Recently, finding herself unable to work after giving birth, a 35-year-old woman in the United States accumulated $23,000 in credit card debt. Following the advice of ChatGPT, she created a debt repayment tracker and began a 30-day repayment challenge, raising funds by canceling unnecessary subscriptions, selling unused items, and cutting expenses. In just one month, she managed to repay approximately $12,000 (about NT$350,000), settling nearly half of her debt. Proactive guidance from AI helped her adopt a more proactive outlook.

This case illustrates how solutions integrating behavioral economics with generative AI could accelerate debt resolution through insights into psychology, customized strategies, and targeted incentives. Mounting credit card debt frequently pushes borrowers into a vicious cycle of new loans to repay old ones, posing a serious obstacle to financial inclusion.

The use of AI to assist with debt repayment has become a key focus of innovation. For example, Bright Money, TrueAccord, and PromisePay all show the potential of AI-driven debt management for the insights they can offer on financial inclusion and behavioral finance.

Bright Money is an AI-driven personal finance platform that brands itself as a digital bank powered by AI. It provides individualized financial planning, assisting users in repaying credit card balances, student loans, and other liabilities, while working to improve their credit ratings. Bright Money functions as a personalized AI financial coach, designed for individuals burdened with multiple credit card debts and struggling to make ends meet. After registering, users link their bank accounts and credit card statements to the app, allowing it to assess their income, expenditures, and consumption patterns. Based on their financial profiles and objectives, the system then makes small automatic transfers into a designated savings account, then later applies the accumulated funds to repay high-interest debt or advance savings targets. When the account balance runs low, or scheduled payments are approaching, the AI automatically adjusts by delaying or lowering transfers, minimizing financial pressure.

This automated small-repayment approach illustrates behavioral economics concepts such as installment saving and pre-commitment to help users accumulate repayment reserves without additional effort. Bright Money focuses on middle-class U.S. households burdened by credit card debt, a long-tail demographic underserved by traditional financial institutions, which lacks professional knowledge and resources. Its AI-driven financial assistance at an affordable monthly rate makes professional guidance more accessible. Users can select repayment strategies based on their preferences (for instance, prioritizing smaller balances or high-interest debts), and he AI then generates an optimal plan that incorporates these choices while reducing overall interest expenses and risk of delinquency.

In addition, Bright Money simultaneously reserves a portion of users’ income to create an emergency fund to enhance risk resilience, while focusing on reducing major credit card debt to raise credit scores, ensuring that users do not focus solely on repaying debt at the expense of building savings. Its credit-building function also leverages small credit lines to help users accumulate a record of timely repayments.

Established in 2013, TrueAccord is an American third-party collections company that leverages AI and machine learning to transform debt collection, replacing coercion with empathy. With its HeartBeat engine, TrueAccord applies big data and machine learning to streamline debt collection, adapting real-time outreach to debtor behavior, and tailoring repayment solutions to individual situations. After banks or e-commerce platforms hand over delinquent accounts, debtors no longer face endless collection calls, but rather AI-optimized emails, text messages, or social media notifications. These messages are delivered through the debtor’s preferred channels and written in a gentle, empathetic tone, earning TrueAccord the reputation of being ‘the most compassionate debt collection company.’ Debtors can then access detailed account information through an online platform and select repayment options. This self-service digital approach enhances both privacy and dignity in the debt resolution process.

From a technical standpoint, the HeartBeat engine optimizes outreach by selecting the moments and tones which maximize the likelihood of the debtor’s engagement. For example, if the data show that a debtor typically checks their email on Monday mornings, then the system sends encouragements or reminders during that window. At the same time, TrueAccord also develops a range of communication templates for typical situations, allowing its system to determine which style is best suited for each debtor.

Reasonable installment schedules are generated for each debtor, who can then modify their plan or apply for extensions digitally. This method has achieved higher recovery rates than conventional collection, while also protecting debtor dignity and strengthening repayment motivation.

PromisePay is an AI-driven platform for governments and utility providers, managing arrears and installment payments in a way that protects uninterrupted essential services while also enhancing both repayment rates and creditor satisfaction. The platform centers on public service billing, combining financial relief plans with installment repayment options into one system. The system uses AI to optimize communication and key behavioral signs, enabling customers in arrears to resume payments through a simple, stress-free process. It is designed for low-income households and individuals experiencing temporary financial distress that could lead to missed public utility payments.

Some may delay payments during periods of economic hardship, yet still intend to repay. Rather than threats or penalties, PromisePay lowers psychological stress and behavioral barriers, by helping customers feel that repayment is both affordable and worthwhile, reducing conflicts in collections, and strengthening trust in service providers. PromisePay combines zero-interest installment plans, preset repayment options, automatic reminders, and AI communication into a comprehensive solution for arrears management. The system’s behavioral design addresses procrastination and decision fatigue, employing commitment mechanisms and positive reinforcement to maintain motivation for repayment.

From the perspective of financial inclusion, PromisePay illustrates how to uphold access to essential services while also balancing debtor dignity with creditor returns. In Richmond, Virginia, the platform successfully reduced arrears by tens of millions of dollars in a short timeframe, with repayment compliance exceeding 93%. Users were able to manage their obligations through an online portal, choosing from preset installment options or customized repayment terms, which is supported by automated deductions and reminders. AI calculates appropriate installment terms and amounts based on the arrears balance and policy limits. Each time a user makes a partial payment, the system instantly sends an encouraging message to provide positive reinforcement.

These cases demonstrate the different stages of debt management. Bright Money emphasizes front-end prevention (everyday financial optimization and automatic repayment for non-delinquent borrowers), while TrueAccord addresses the back end (AI-enhanced collections and flexible repayment for delinquent accounts), and PromisePay marks a middle ground: installment negotiation for overdue public bills while also ensuring uninterrupted service. Nevertheless, at their core, all three use AI to counter human biases and encourage rational repayment. Bright Money employs automatic deductions to solve the present-bias of consumption; TrueAccord uses empathetic, flexible communication to resolve debtor shame and anxiety; and PromisePay reduces decision stress through zero-interest installment options and default plans.

The common factors across all three cases are personalization and user autonomy: AI generates data-informed guidance, however the final decisions are still left to the debtor. Respecting and understanding borrower autonomy is the key to success to making financial inclusion work. Personalized AI and digital technology can improve both the effectiveness and the experience of debt repayment, offering new hope to those in financial distress. These tools act as partners rather than counterparties, using human-centered incentives to guide debtors toward a debt-free life.

However, they also bring challenges in risk management and policy adaptation. A truly resilient and inclusive financial system requires both the effective application of technology and a strong human-centered approach. Getting this right will help debtors to restore their financial independence more quickly.

The author is Director of the GMBA Program at National Chaio Tung University and an Independent Director of Hua Nan Financial Holdings.