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Debt Decision and Repayment of US Young Adults  

Lee, Jong-Hee (Department of Consumer Sciences, Ohio State University)
Yang, Se-Jeong (Department of Consumer and Housing Studies, Sangmyung University)
Publication Information
International Journal of Human Ecology / v.9, no.2, 2008 , pp. 77-92 More about this Journal
Abstract
This study investigates the characteristics of young debtors at risk of repayment problems. A cumulative logistic model is used in order to examine the effects of explanatory variables on the probability for young adults to pay off debt obligations. The following conclusions can be drawn from the results. First, the high indebtedness of young debtors increases the probability of payment delinquency whereas high income by young debtors decreases the probability. Second, financial emergencies that young debtors experienced and payment delinquency are positively related. Finally, financial resources for emergency needs reduced the probability of being delinquency on payment of household debt.
Keywords
debt; repayment; delinquency; young adult; overspending; risk tolerance; credit;
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