IDEAS home Printed from https://ideas.repec.org/a/pal/buseco/v45y2010i4p266-276.html
   My bibliography  Save this article

Fueling the Credit Crisis: Who Uses Consumer Credit and What Drives Debt Burden?

Author

Listed:
  • Diane K Schooley
  • Debra Drecnik Worden

Abstract

Excessive household debt contributed to the worst recession in decades. Insights about borrowing and spending behavior can inform economic recovery forecasts, policy decisions, and financial education. This study identifies life cycle and credit attitude as key determinants of who uses debt. Younger households are more likely to borrow for consumption, as are those who believe that it is all right to borrow to purchase luxury goods or cover living expenses. Furthermore, households that condone borrowing for these purposes have a higher consumer debt burden. Debt capacity (or creditworthiness) and financial discipline are also significant factors in determining household debt use.

Suggested Citation

  • Diane K Schooley & Debra Drecnik Worden, 2010. "Fueling the Credit Crisis: Who Uses Consumer Credit and What Drives Debt Burden?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 45(4), pages 266-276, October.
    • Handle: RePEc:pal:buseco:v:45:y:2010:i:4:p:266-276
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/be/journal/v45/n4/pdf/be201025a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/be/journal/v45/n4/full/be201025a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Whitaker, Stephan D., 2018. "Big Data versus a survey," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 285-296.
    2. David Aristei & Cristiano Perugini, 2022. "Credit and income mobility in Russia," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(3), pages 639-669, September.
    3. Cäzilia Loibl & Jodi Letkiewicz & Simon McNair & Barbara Summers & Wändi Bruine de Bruin, 2021. "On the association of debt attitudes with socioeconomic characteristics and financial behaviors," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(3), pages 939-966, September.
    4. Weng, Hsu-Chi & Hermansson, Cecilia, 2024. "Behavioral intention, personality and consumer credit use," Working Paper Series 24/8, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    5. Rendall, Stella & Brooks, Chris & Hillenbrand, Carola, 2021. "The impacts of emotions and personality on borrowers’ abilities to manage their debts," International Review of Financial Analysis, Elsevier, vol. 74(C).
    6. Jae Min Lee & Narang Park & Wookjae Heo, 2019. "Importance of Subjective Financial Knowledge and Perceived Credit Score in Payday Loan Use," IJFS, MDPI, vol. 7(3), pages 1-21, September.
    7. Mary Eschelbach Hansen & Julie Routzahn, 2014. "Gender Differences in Attitudes Toward Debt and Financial Position: The Impact of the Great Recession," Working Papers 2014-10, American University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:buseco:v:45:y:2010:i:4:p:266-276. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.