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Modelling of Structural Equations Based on the Relationship Between Financial Overdebt, Job Risk, Decreased Quality of Life, and Proactive Behavior in the Meaning of Finding an Additional Job

Author

Listed:
  • Vuković Dijana

    (Associate Professor, PhD University of North Jurja Križanića 31b 42000 Varaždin Croatia)

  • Petohlep Karmen Vlah

    (mag.oecc. Veleučilište u Rijeci Vukovarska 58 51000 Rijeka, Croatia)

Abstract

Modern lifestyles often put at risk careless and reckless financial management, which can lead to over-indebtedness, default and bankruptcy. The inability of individuals to manage their finances is accompanied by numerous negative business, social and family implications that manifest themselves through financial stress, limited spending opportunities, which are directly related to the quality of life, and increasing inequality. In the paper, the authors investigate the phenomenon of excessive borrowing in Croatia to improve the quality of life and artificially raise the standard of living, which limits the plans of the inhabitants of Croatia. Quality of life, within the framework of this research, encompasses the dimensions of financial stability, health, social inclusion and general satisfaction with life, analysing how an individual’s economic circumstances shape their personal and social well-being. Furthermore, the paper analyses (i) the characteristics of individuals in financial difficulties, their attitudes towards debt reduction planning and financial recovery strategies, and (ii) differences in proactive behaviour among individuals, particularly in the context of willingness to take on additional work and the benefits of living standards in response to the current deterioration of their financial situation. The research results indicate that the key to achieving an economy of well-being is finding a balance between the benefits of credit and a sustainable level of indebtedness adjusted to the individual’s financial capabilities. In this context, the research was conducted on a purposive sample of 782 respondents who experienced a loss of economic autonomy and sovereignty in making financial decisions, which influenced their proactive behaviour. The research results confirm that the key to achieving economic well-being is establishing a balance between the benefits of credit and a sustainable level of indebtedness that does not threaten the financial stability of the individual. The research was conducted on a purposive sample of 782 respondents who experienced a loss of economic autonomy, which had a direct impact on the quality of life. The research results suggest that economic factors, such as low income and increased indebtedness, have a more pronounced negative effect on quality of life, while job riskiness may be a reason for finding additional work.

Suggested Citation

  • Vuković Dijana & Petohlep Karmen Vlah, 2026. "Modelling of Structural Equations Based on the Relationship Between Financial Overdebt, Job Risk, Decreased Quality of Life, and Proactive Behavior in the Meaning of Finding an Additional Job," South East European Journal of Economics and Business, Sciendo, vol. 21(1), pages 30-60.
    • Handle: RePEc:vrs:seejeb:v:21:y:2026:i:1:p:30-60:n:1003
    DOI: 10.2478/jeb-2026-0003
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    References listed on IDEAS

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    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E7 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics
    • G4 - Financial Economics - - Behavioral Finance
    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics

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