Hauff / Gärling / Lindblom Indebtedness in Early Adulthood

Causes and Remedies
1. Auflage 2019
ISBN: 978-3-030-13996-4
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 194 Seiten

Reihe: Progress in Mathematics

This book reviews problems with credit use and causes of indebtedness among young adults, while uncovering possibilities to encourage a healthier attitude towards loans in this segment of the population. Both consumption loans and mortgages are covered in order to adequately represent real-world credit use by young people about to enter adulthood. It focuses on three distinctive actors: the legislative authorities, the financial institution, most commonly a bank, and finally the individual borrower. More specifically, the book discusses the functioning of these three entities in the context of young adults borrowing behaviour, and would appeal to academics, researchers and students of financial institutions and banking.




Jeanette Carlsson Hauff received a PhD from the University of Gothenburg, Sweden, and is now an Assistant Professor at the same university. Her research focuses on consumer behaviour and financial services and she has been published in peer-reviewed international journals (such as European Journal of Marketing) and book chapters.
Tommy Gärling was the endowed professor of psychology at University of Gothenburg, Sweden from 1992 to 2006. He is a fellow of the International Association of Applied Psychology (divisions of economic psychology, environmental psychology, traffic and transportation psychology) and was president of the environmental psychology division from 1998 to 2002.
Ted Lindblom is Professor at the Department of Business Administration at the School of Business, Economics and Law, at the University of Gothenburg, Sweden. His current research mainly concerns industrial and financial management with particular focus on corporate finance, investment and financial structure decisions, banking, risk and regulation.

Autoren/Hrsg.

Hauff, Jeanette Carlsson

Gärling, Tommy

Lindblom, Ted

Inhaltsverzeichnis

1;Preface;5
2;Contents;7
3;Notes on Contributors;9
4;List of Figures;12
5;List of Tables;14
6;Part I Introduction to Young Adults’ Indebtedness;17
7;Chapter 1 Why Study Young Adults’ Indebtedness?;18
7.1;1 Introduction;18
7.2;2 The Research Program;21
7.2.1;2.1 Project 1: Causes of Young Adults’ Borrowing Decisions;22
7.2.2;2.2 Project 2: Effects of Information Format on Borrowing;23
7.2.3;2.3 Project 3: Regulatory Actors and Their Tools;24
7.3;3 The Book’s Organization—A Brief Overview;26
7.3.1;3.1 The Structure of the Book;26
7.3.2;3.2 Chapter Overviews;28
7.4;4 Concluding Remarks;31
7.5;References;34
8;Chapter 2 Indebtedness, Over-Indebtedness and Wellbeing;36
8.1;1 Introduction;36
8.2;2 A Brief Literature Overview;38
8.2.1;2.1 Definitions of Over-Indebtedness;41
8.2.2;2.2 The Relationship Between Over-Indebtedness and Financial Exclusion;44
8.2.3;2.3 The Relationship Between Over-Indebtedness and Financial Literacy;45
8.2.4;2.4 Measuring Over-Indebtedness in Practice—An Illustration;46
8.3;3 Indebtedness and Over-Indebtedness in Numbers;50
8.3.1;3.1 Descriptive Statistics of European Households;50
8.3.2;3.2 Estimations of Societal Costs and Wellbeing Related to Over-Indebtedness in Sweden;55
8.4;4 Concluding Remarks;58
8.5;References;60
9;Chapter 3 The Loan Market—The Swedish Example;64
9.1;1 Introduction;64
9.2;2 The Swedish Financial Environment;65
9.3;3 The Swedish Loan Market;68
9.3.1;3.1 Mortgage Loans;68
9.3.2;3.2 Other Types of Consumer Credit;69
9.3.3;3.3 The Market for Unsecured Instant Loans;70
9.4;4 An International Comparison;71
9.4.1;4.1 The Total Loan Market;71
9.4.2;4.2 The Mortgage Market;72
9.5;5 Age Differences Among Borrowers;74
9.6;6 Concluding Remarks;74
9.7;References;75
10;Part II Psychological Factors Explaining Young Adults’ Indebtedness;77
11;Chapter 4 Young Adults’ Attitudes Toward Borrowing;78
11.1;1 Introduction;78
11.2;2 Definition and Measurement of Attitude Toward Borrowing;79
11.3;3 Review of Previous Studies;84
11.3.1;3.1 Antecedents of Young Adults’ Attitudes Toward Borrowing;84
11.3.2;3.2 Consequences of Young Adults’ Attitude Toward Borrowing;87
11.4;4 Measuring Attitude Toward Borrowing;90
11.5;5 Summary and Conclusions;94
11.6;References;97
12;Chapter 5 Young Adults’ Consumption Desires, Feelings of Financial Scarcity and Borrowing;101
12.1;1 Introduction;101
12.2;2 Borrowing and Purchasing;103
12.3;3 Affective/Cognitive Pre-decisional Information Processing;104
12.4;4 Borrowing Unawareness;110
12.5;5 Summary and Conclusions;114
12.6;References;117
13;Part III Financial Information and Young Adults’ Borrowing Decisions;121
14;Chapter 6 Impacts of Loan Communication on Young Adults’ Borrowing;122
14.1;1 Introduction;122
14.2;2 The Influence of Communication and Information on Behavior: The Importance of Involvement;124
14.2.1;2.1 Importance of Effective Communication and Accurate Information;124
14.2.2;2.2 Communication and Information Initiatives on Borrowing and Credit;126
14.2.2.1;2.2.1 The Importance of How Borrowing Information Is Presented: Loan Disclosure and Format;126
14.2.2.2;2.2.2 General Remarks and Observations;128
14.3;3 Two Studies of the Influence of Communication and Information About Borrowing Behavior;129
14.3.1;3.1 Does Clear Information Matter?;129
14.3.2;3.2 Storytelling as Influencing Involvement?;132
14.4;4 Conclusions and Implications;136
14.5;References;137
15;Chapter 7 Financial Literacy and Debt;140
15.1;1 Introduction;140
15.2;2 Financial Literacy;141
15.3;3 Financial Literacy Connected to Borrowing Decisions;142
15.4;4 Financial Inclusion;143
15.5;5 Measuring Financial Literacy;145
15.6;6 Empirical Effects of Financial Literacy on Debt-Related Financial Behavior;147
15.6.1;6.1 Financial Freedom;148
15.6.2;6.2 Debt and Income;149
15.6.3;6.3 Mortgage Loans;150
15.6.4;6.4 Fixed or Floating Mortgage Rates;151
15.6.5;6.5 Use of Consumer Credit;151
15.6.6;6.6 Use of Credit Cards;152
15.6.7;6.7 Use of Pawn Shops;153
15.6.8;6.8 Summary;155
15.7;7 Young Adults;156
15.8;8 Conclusion;157
15.9;References;158
16;Part IV Legislator Tools and Possibilities for Healthy Lending;161
17;Chapter 8 Toward Soundness in Provision of Credits and Loans to Young Adults;162
17.1;1 Introduction;162
17.2;2 An EU-Perspective on Policy Measures Against Over-Indebtedness;165
17.2.1;2.1 Public Policy Intervention;167
17.2.2;2.2 Individual Level Aid;168
17.3;3 Over-Indebtedness from a Legal Perspective: The Case of Sweden;173
17.4;4 Concluding Remarks;179
17.5;References;181
18;Author Index;185
19;Subject Index;192