The Impact of Age on Polish Households Financial Behavior – Indebtedness and Over-Indebtedness

Anioła-Mikołajczak, Paulina

doi:10.15290/ose.2017.01.85.08

Cited by 6 publications

(4 citation statements)

References 13 publications

(18 reference statements)

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“…Only a minority of households could be considered over-indebted when arrears are taken into account. This is in line with the results from previous, fragmentary studies of Polish households (Świecka 2009;Anioła-Mikołajczak 2017). The percentage of overindebted households in relation to the DSTI30 obtained in our study is similar to the results presented by Świecka (2016) and by the NBP (2017).…”

Section: Discussionsupporting

confidence: 93%

Over-indebted Households in Poland: Classification Tree Analysis

Wałęga

2020

Soc Indic Res

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Increasing a personal debt burden implies greater financial vulnerability and threats for macroeconomic stability. It also generates a risk of the households over-indebtedness. The assessment of over-indebtedness is conducted with the use of various objective and subjective measures based on the micro-level data. The aim of the study is to investigate over-indebted households in Poland using a unique dataset obtained from the CATI survey. We discuss and compare the usefulness of various over-indebtedness measures across different socio-economic characteristics. Due to the differences in over-indebtedness across single measures, we perform a more complex assessment using a mix of indicators. As an alternative to other commonly criticised over-indebtedness measures, we apply the “below the poverty line” (BPL) measure. In order to obtain the profile of over-indebted households, we use classification and regression tree analysis as an alternative to logit or probit models. We find that DSTI (“debt service to income”) ratio underestimates the extent of over-indebtedness in vulnerable groups of households in comparison with the BPL. We highlight the necessity to use different measures depending on the adopted definition of over-indebtedness. A psychological burden of debts is particularly strong among older and poorly educated respondents. We also find that the age structure of over-indebted households in Poland differs from this structure in countries with a broader access to consumer credits. Our results can be used to enrich the methods of assessing the household over-indebtedness.

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Section: Discussionsupporting

confidence: 93%

Over-indebted Households in Poland: Classification Tree Analysis

Wałęga

2020

Soc Indic Res

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“…Another group of factors relates to the estimates generated by the concept of behavioural finance. A large list of such factors is contained in a number of works by researchers of credit behavior of the population [see, e.g., 1,2,9,10,11,13].…”

Section: Resultsmentioning

confidence: 99%

Factors of the Population's Credit Activity: Regional Features on the Example of the Russian Far East

Renzin¹,

Trop²,

Kuzmichev³

2019

Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2018)

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The dynamic and structural features of the population's credit activity of the Russian Far East and its federal subjects were compared with other federal districts in the period of 2009-2017.Based on the study of the main retail lending markets characteristics of the Far East (consumer and mortgage lending), the influence of two groups of factors was analyzed and quantified: 1. The features of the region's traditional interrelations between volume of loans and financial position of potential borrowers (level of income, debt load, characteristics of accumulated assets, including Housing and privately owned vehicles); 2. The closeness of ties between lending activity and demographic and social characteristics of the territories population was assessed within the framework of the behavioral finance concept, including age structure, education, migration mobility, marital status, etc. A high level of segmentation of the Far Eastern territories was established in terms of sensitivity to individual factors within both traditional, and the beha-vioral analysis. The research results prove the necessity of including a number of indicators in development programs aimed at increasing the migration attractiveness of the territories, taking into account the differentiation of their influence on the population's activity in local credit markets. A purposeful structural adjustment of the retail credit market was proposed under the institutional characteristics of the emerging "Far Eastern financial center".

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“…Similarly, the study by Mpogole et al (2012) in Tanzania revealed that over 70% of the respondents had problems in loan repayment because of having multiple loans. Anioła-Mikołajczak (2017) found out that over-indebtedness in Poland is associated with individuals taking multiple loans from different lenders. Many other researchers have identified a link between over-indebtedness and multiple borrowing (e.g., Haq et al, 2018a;Wałęga & Wałęga, 2020).…”

Section: Multiple Borrowing and Over-indebtednessmentioning

confidence: 99%

An assessment of over-indebtedness among microfinance institutions’ borrowers: The Tanzanian perspective

Kasoga

Tegambwage

2021

Cogent Business & Management

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The introduction of microfinance institutions is viewed as the best alternative source of financial services for low-income earners as a means to raise their income and reduce poverty. However, empirical research has indicated that the majority of microfinance institutions' borrowers are over-indebted. Overindebtedness has negative consequences for debtors, creditors, and for the economy as a whole. Since over-indebtedness is a context-specific phenomenon, it lacks universally accepted indicators. This study aims to validate indicators of overindebtedness and examine the situation of over-indebtedness among microborrowers in the context of Tanzania. A survey of 535 micro-borrowers was conducted using a semi-structured questionnaire. Descriptive, thematic, and logistic regression techniques were employed for data analysis. Findings show that debt-toincome ratio, multiple borrowing, and delinquency have a positive and significant effect on over-indebtedness. Further, findings indicate that over-indebted microborrowers in Tanzania spend 75% or more of monthly income on servicing debts; are in the state of delinquency; are unable to meet basic needs due to loan repayment expenditure, have three or more credit commitments, and are in delinquency. To reduce over-indebtedness and hence poverty among micro-borrowers,

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The Impact of Age on Polish Households Financial Behavior – Indebtedness and Over-Indebtedness

Cited by 6 publications

References 13 publications

Over-indebted Households in Poland: Classification Tree Analysis

Over-indebted Households in Poland: Classification Tree Analysis

Factors of the Population's Credit Activity: Regional Features on the Example of the Russian Far East

An assessment of over-indebtedness among microfinance institutions’ borrowers: The Tanzanian perspective

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