The impact of unsecured debt on financial distress among British households
This paper uses evidence from the British Household Panel Survey (BHPS) to examine how attitudes towards unsecured debt are related to household finances and other characteristics. An ordered logit model is estimated for 1995 and 2000 using a self reported indicator of financial distress as the dependent variable. This analysis suggests that the main factors causing debt problems are the unsecured debt income ratio, the level of mortgage income gearing, the level of financial wealth of households, their health, ethnicity and marital status. While the proportion of households reporting debt problems did not change between 1995 and 2000, there were important shifts among different groups. In particular, more households in the youngest age group reported debt repayments were a heavy burden in 2000, while the opposite applies to the oldest age group where a smaller proportion of households than in 1995 reported debt was a heavy burden. These changes can largely be accounted for by the changing economic circumstances of these groups rather than an unrelated shift in attitudes. In particular, the increase in indebtedness of the young was the main factor accounting for their greater tendency to report debt problems.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fabio Canova & Matteo Ciccarelli & Eva Ortega, 2004.
"Similarities and convergence in G-7 cycles,"
Banco de Espa�a Working Papers
0404, Banco de Espa�a.
- Canova, Fabio & Ciccarelli, Matteo & Ortega, Eva, 2004. "Similarities and Convergence in G7 Cycles," CEPR Discussion Papers 4534, C.E.P.R. Discussion Papers.
- Fabio Canova & Matteo Ciccarelli & Eva Ortega, 2003. "Similarities and convergence in G-7 cycles," Economics Working Papers 924, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 2004.
- Canova, Fabio & Ciccarelli, Matteo & Ortega, Eva, 2004. "Similarities and convergence in G-7 cycles," Working Paper Series 0312, European Central Bank.
- Javier Andres & J. David López-Salido & Edward Nelson, 2004.
"Tobin's imperfect asset substitution in optimizing general equilibrium,"
2004-003, Federal Reserve Bank of St. Louis.
- Andrés, Javier & López-Salido, J David & Nelson, Edward, 2004. "Tobin's Imperfect Asset Substitution in Optimizing General Equilibrium," CEPR Discussion Papers 4336, C.E.P.R. Discussion Papers.
- repec:ese:iserwp:2000-04 is not listed on IDEAS
- Ana del Rio & Garry Young, 2006. "The determinants of unsecured borrowing: evidence from the BHPS," Applied Financial Economics, Taylor & Francis Journals, vol. 16(15), pages 1119-1144.
- Berben, Robert-Paul & Locarno, Alberto & Morgan, Julian & Vallés, Javier, 2004.
"Cross-country differences in monetary policy transmission,"
Working Paper Series
0400, European Central Bank.
- Robert-Paul Berben & Alberto Locarno & Julian Morgan & Javier Vallés, 2005. "Cross-country differences in monetary policy transmission," Banco de Espa�a Working Papers 0502, Banco de Espa�a.
- Ana Buisán & Juan Carlos Caballero & José Manuel Campa & Noelia Jiménez, 2004.
"La importancia de la histéresis en las exportaciones de manufacturas de los países de la UEM,"
Centro de Estudios Monetarios Latinoamericanos, vol. 0(2), pages 169-222, abril-jun.
- Buisan, Ana & Caballero, Juan C. & Campa, Jose M. & Jimenez, Noelia, 2004. "La importancia de la histéresis en las exportaciones de manufacturas de los países de la UEM," IESE Research Papers D/561, IESE Business School.
- Dolado, Juan J. & Jansen, Marcel & Jimeno, Juan F., 2005.
"Dual Employment Protection Legislation: A Framework for Analysis,"
IZA Discussion Papers
1564, Institute for the Study of Labor (IZA).
- Juan J. Dolado & Marcel Jansen & Juan F. Jimeno, 2005. "Dual employment protection legislation: a framework for analysis," Banco de Espa�a Working Papers 0510, Banco de Espa�a.
- Dolado, Juan J. & Jansen, Marcel & Jimeno, Juan F, 2005. "Dual Employment Protection Legislation: A Framework for Analysis," CEPR Discussion Papers 5033, C.E.P.R. Discussion Papers.
- Boheim, Rene & Taylor, Mark P., 2000.
"My Home Was My Castle: Evictions and Repossessions in Britain,"
Journal of Housing Economics,
Elsevier, vol. 9(4), pages 287-319, December.
- Máximo Camacho & Gabriel Pérez-Quirós, 2005.
"Jump-and-rest effect of U.S. business cycles,"
Banco de Espa�a Working Papers
0507, Banco de Espa�a.
When requesting a correction, please mention this item's handle: RePEc:bde:wpaper:0512. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mar�a Beiro. Electronic Dissemination of Information Unit. Research Department. Banco de Espa�a)
If references are entirely missing, you can add them using this form.