Abstract
Debt was defined as all kinds of borrowings made by families in including credit card debt. The purpose of the study was to investigate the effects of family debt management on financial satisfaction. A model of debt management and financial satisfaction was developed based on the Deacon-Firebaugh's systems approach to family resource management and the variables comprising input throughput and output were based on the theoretical background asnd previous researches. Data were collected from 763 households' money managers residing in Seoul during Summer of 1995 and the statistical methods utilized included correlation coefficient multiple regression and path analyses. It was responded about 82% of the households had been indebted indicating the use of debt being a general way of living in this society. The results showed that financial satisfaction lowered with larger amount of monthly debt payment and with their uncertiainty regarding their capability to repay debt. The input which exerted direct effects on financial satisfaction were income asset financial expectations and family life cycle. And consumption demand on debt and easiness in extending credit had strong indirect effects on financial satisfaction via the throughput variables. The most powerful predictor of financial satisfaction via the throughput variables. The most powerful predictor of financial satisfaction was perceived difficulty in managing debt which was the instrumental output.