Analysis of the Factors to Search for the Actual Causes That Led to the Accumulation of Debts on Individuals

Background. Financial crises become more probable and severe when debt levels exceed specific thresholds. This finding strongly indicates that debt can become excessive in some circumstances. All the above are from previous studies that mentioned the statistics of debts, financial crises, and defaults in countries without mentioning the reasons that led to the debts. Objective. The aim of this study is to identify the causes that led to the accumulation of debts by individuals. Methods and Materials. A cross-sectional survey was administered to the common populace in KSA, utilizing Google shapes to gather information. The target group comprised 143 males (34.5%) and 272 females (65.5%) responders. Statistical analysis methods were based on factor analysis and regression analysis of fractional factorials. Results. The results of the analysis were summarized by the factors for the first stage: the reasons that led to the debt crisis for individuals were S1, S2, and S5–S13. The results of the second method, regression analysis, show that the reasons that led to the debt crisis for individuals are S4 and S11. Conclusion. Referring to the results of the analysis of the two methods, it was found that there is a common factor between them, S11, and thus, S11 (poor management and inefficiency) becomes the actual cause that led to the debt crisis for individuals.