Analysis of Household Debt on Poverty Level in Rejang Lebong District: A Logit Model Approach

High poverty rates have become a severe problem in many developing countries, with high poverty rates hampering equitable economic development. Many factors contribute to the high poverty rate, one of which is household consumption debt problem. In many cases it is found that every family experience debt problem, and many poor households have debts to fulfill their daily needs due to low income levels so that they cannot meet all family needs. this creates a new problem: low-income families burdened to pay these debts. This study aims to analyze the effect of household debt variables (debt, income, education level, number of family members, and savings) on the poverty rate. Debt is seen from the ownership and amount of debt, income is seen from the amount of income level, education is measured from the level of education taken by the head of the family, the number of family members is measured from the number of people who are dependent on the head of the family, and savings are measured from the ownership of savings. This study uses primary data, sample withdrawal is done by accidental sampling. Data were collected through questionnaires, while the data analysis method used Logistic Regression Analysis. The results show that the debt variable causes the family to be at risk of becoming poor, education level variable can cause the family’s risk of becoming poor, the working partner can cause the family’s risk of becoming poor, the residence can cause the family’s risk of becoming poor, the savings variable cause the family’s risk of becoming poor. In contrast the number of family members variable do not cause the family’s risk of poverty.