Locus of control and home mortgage loan behaviour

Wang, Mingji; Chen, Hong; Wang, Lei

doi:10.1080/00207590801888760

Cited by 10 publications

(12 citation statements)

References 19 publications

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“…However, although effects emerge consistently, their nature and direction may vary across different forms of credit. Wang, Chen, and Wang (2008), for instance, report evidence that an external locus of control decreases the extent of mortgage loans; this is opposite to the effect commonly found on credit card debt. This may be due to the fact that credit‐card spending is affected by impulse, whereas mortgage use is usually extensively planned.…”

Section: A Process‐based Review Of Phenomenological Perspectivesmentioning

confidence: 96%

Credit use: Psychological perspectives on a multifaceted phenomenon

2011

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Consumer borrowing is a highly topical and multifaceted phenomenon as well as a popular subject for study. We focus on consumer credit use and review the existing literature. To categorize what is known we identify four main psychological perspectives on the phenomenon: credit use as (1) a reflection of the situation, (2) a reflection of the person, (3) a cognitive process, and (4) a social process. On top of these perspectives we view credit use as a process that entails three distinct phases: (1) processes before credit acquisition, (2) processes at credit acquisition, and (3) processes after credit acquisition. We review the international literature along a two-tier structure that aligns the psychological perspectives with a process view of credit. This structure allows us to identify systematic concentrations as well as gaps in the existing research. We consolidate what is known within each perspective and identify what seems to be most urgently missing. Some of the most important gaps relate to research studying credit acquisition from the perspective of credit use as a reflection of the person or as a social process. In particular, research on credit use as a reflection of the person appears to focus exclusively on the first stage of the credit process. We conclude with a discussion that reaches across perspectives and identifies overarching gaps, trends, and open questions. We highlight a series of implicit linkages between perspectives and the geographical regions in which studies related to the perspectives were conducted. Beyond diagnosing a geographical imbalance of research, we argue for future research that systematically addresses interrelations between perspectives. We conclude with a set of global implications and research recommendations.

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Section: A Process‐based Review Of Phenomenological Perspectivesmentioning

confidence: 96%

Credit use: Psychological perspectives on a multifaceted phenomenon

2011

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“…Among the psychological variables that have often been found to be associated with higher debt are more tolerant attitudes towards debt (Lea et al, 1993), a more external locus of control (e.g. Ding, Chang & Liu, 2009;Livingstone & Lunt, 1992;Tokunaga, 1993; though contrast Lea et al1995;Wang, Chen & Wang, 2008; and, for student samples, Norvilitis, Szablicki & Wilson, 2003;Trent, Lee & Owens-Nicholson, 2006), a sense of inadequacy about money or money management (e.g. Lea et al, 1995;Stone & Maury, 2006), and excessive optimism , for the general population; Seaward & Kemp, 2000, for students).…”

Section: Previous Literature: the Antecedents Behaviour And Consequementioning

confidence: 99%

First steps out of debt: Attitudes and social identity as predictors of contact by debtors with creditors

Mewse

Lea

Wrapson

2010

Journal of Economic Psychology

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“…Studies focused on the relationships among incurring and repaying loans, and the locus of control have resulted in complex findings. External locus appears to increase the likelihood of credit card debt (Tokunaga, 1993) but, at the same time, decreases the likelihood of incurring a mortgage (Wang, Chen, and Wang, 2008). However, this correlation has not been replicated in all studies (Lea et al, 1995).…”

Section: Introductionmentioning

confidence: 95%

Predictors of the Propensity to Incur Loans for Varying Purposes in the Future*

Anna¹,

Maison²

2021

ERSJ

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Purpose: This study examines the socioeconomic and psychological variables predicting the propensity to incur loans for different purposes in the future such as loans for necessities, hedonistic, long-term investments, and others. Design/Methodology/Approach: Hierarchical linear regression and dominance analyses have been conducted. Findings: Openness to loan-taking is the only predictor of loans for hedonistic purposes, and a dominant predictor of other loans, excluding loans for long-term investments which depend more on total debt, aversion to planning, and life satisfaction. Loans for relatives depend on an openness to spending money on others and on locus of control. A subjective assessment of one's own financial situation is predictive of loans for necessities. Practical Implications: The communication directed to consumers should be varied depending on the motivation underpinning the decision to make a financial commitment and matched with the psychological characteristics of the borrowers. Controlling the borrower's subjective assessment of their own financial situation will facilitate a more accurate prediction of what kind of borrower he or she will be. Originality/value: Research to date on the credit use has focused primarily on economic factors. Our study has shown that psychological and subjective factors (especially selfperception of one's financial situation) are at least equally important in explaining propensity to incur loans for varying purposes.

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Locus of control and home mortgage loan behaviour

Cited by 10 publications

References 19 publications

Credit use: Psychological perspectives on a multifaceted phenomenon

Credit use: Psychological perspectives on a multifaceted phenomenon

First steps out of debt: Attitudes and social identity as predictors of contact by debtors with creditors

Predictors of the Propensity to Incur Loans for Varying Purposes in the Future*

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