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The impact of unsecured debt on financial pressure among British households

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  • Ana del Rio
  • Garry Young

Abstract

This article uses the 1995 and 2000 waves of the British Household Panel Survey to examine how a self-reported indicator of financial pressure is related to household finances and other characteristics. Using an ordered-logit model we find that the burden of debt is affected by the unsecured debt-income ratio, mortgage income gearing, financial wealth, health, ethnicity and marital status.

Suggested Citation

  • Ana del Rio & Garry Young, 2008. "The impact of unsecured debt on financial pressure among British households," Applied Financial Economics, Taylor & Francis Journals, vol. 18(15), pages 1209-1220.
  • Handle: RePEc:taf:apfiec:v:18:y:2008:i:15:p:1209-1220
    DOI: 10.1080/09603100701604233
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    References listed on IDEAS

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    1. John Whitley & Richard Windram & Prudence Cox, 2004. "An empirical model of household arrears," Bank of England working papers 214, Bank of England.
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    Cited by:

    1. Giarda, Elena, 2013. "Persistency of financial distress amongst Italian households: Evidence from dynamic models for binary panel data," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3425-3434.
    2. Luisa ANDERLONI & Emanuele BACCHIOCCHI & Daniela VANDONE, 2011. "Household financial vulnerability: an empirical analysis," Departmental Working Papers 2011-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 03 Nov 2011.
    3. Cifuentes, Rodrigo & Margaretic, Paula & Saavedra, Trinidad, 2020. "Measuring households' financial vulnerabilities from consumer debt: Evidence from Chile," Emerging Markets Review, Elsevier, vol. 43(C).
    4. Chichaibelu, Bezawit Beyene & Waibel, Hermann, 2017. "Borrowing from “Pui” to Pay “Pom”: Multiple Borrowing and Over-Indebtedness in Rural Thailand," World Development, Elsevier, vol. 98(C), pages 338-350.
    5. Lemus, Antonio & Pulgar, Carlos, 2021. "Households’ Debt Thresholds: A Market Aspects Approach," MPRA Paper 106958, University Library of Munich, Germany.
    6. Declan French, 2018. "Financial strain in the United Kingdom," Oxford Economic Papers, Oxford University Press, vol. 70(1), pages 163-182.
    7. French, Declan & Vigne, Samuel, 2019. "The causes and consequences of household financial strain: A systematic review," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 150-156.
    8. Chichaibelu, Bezawit & Waibel, Hermann, 2015. "The Interrelated Dynamics of Multiple Borrowing and Over-indebtedness among Rural Households in Thailand and Vietnam," 2015 Conference, August 9-14, 2015, Milan, Italy 211463, International Association of Agricultural Economists.
    9. Barbara Cavalletti & Corrado Lagazio & Elena Lagomarsino & Daniela Vandone, 2020. "Consumer Debt and Financial Fragility: Evidence from Italy," Journal of Consumer Policy, Springer, vol. 43(4), pages 747-765, December.
    10. Reboul, E. & Guérin, I. & Nordman, C.J., 2021. "The gender of debt and credit: Insights from rural Tamil Nadu," World Development, Elsevier, vol. 142(C).
    11. Cristina OTTAVIANI & Daniela VANDONE, 2010. "Impulsivity and household indebtedness," Departmental Working Papers 2010-28, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    12. Blázquez, Maite & Budría, Santiago & Moro-Egido, Ana I., 2020. "Over-indebtedness and age: The effects on individual health," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    13. Ottaviani, Cristina & Vandone, Daniela, 2011. "Impulsivity and household indebtedness: Evidence from real life," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 754-761.
    14. Grzegorz Wałęga & Agnieszka Wałęga, 2021. "Over-indebted Households in Poland: Classification Tree Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 561-584, January.

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