Consumer Debt Prevention and Discharge in the Arabian Gulf

Burton, Dawn

doi:10.1007/s10603-020-09471-z

Cited by 4 publications

(2 citation statements)

References 38 publications

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“…Moreover, accruing debt is only permissible and considered a serious matter in cases of absolute necessities and brings benefits and facilitates life improvements (Othman et al, 2013). Therefore, under Sharia, consumer indebtedness that causes insolvency is prohibited (Burton, 2021).…”

Section: 2mentioning

confidence: 99%

Muslim Consumers’ Credit Card Debt Management

Mohd Alwi,

Abdullah,

Luqman

2023

MAJCAFE

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Due to the widespread usage of credit cards, excessive debt is almost inevitable, particularly among Muslim consumers. Therefore, this study explores the understanding of Muslim consumers towards credit card debt management from the Islamic perspective. Semi-structured interviews with 16 participants were used in this study to gather information for the exploratory analysis. Four themes were identified among Muslim users as the primary reasons for understanding the Maqasid Shariah (MS) in credit card (CC) debt management: convenience, emergency, benefit and social status. Furthermore, this study developed a prominent higher-order theme: the priority in credit card debt management. The study incorporates an understanding of respectability in credit card management that is consistent with Islamic teaching.

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Section: 2mentioning

confidence: 99%

Muslim Consumers’ Credit Card Debt Management

Mohd Alwi,

Abdullah,

Luqman

2023

MAJCAFE

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“…Foreign investment has driven the growth of the fintech industry in Indonesia, with investors from China being the most dominant group of shareholders (making up 38 per cent of identified OJK-registered companies in 2018), notably following a "gold rush" due to stricter regulations at home (Tritto et al 2020). On the other hand, since Indonesia implements a dual financial system (one which considers both the conventional and Islamic financial frameworks) (Syarif 2019), which is an outcome of the aspired development of the "Islamic economy project" (Choiruzzad 2013) as in other Muslim societies (Burton 2021), the "Sharia-based" fintech lending has been made available (there were 10 already OJK-registered companies as of 2021) to cater for the Muslim majority population who prefers it to the "conventional" fintech service. Compared to the conventional fintech loan, which has received many criticisms for customer protection failures, the Sharia fintech has received little media coverage regarding customers' experiences, apart from how it is portrayed to be "distinct" in service (namely, not imposing riba (interests) -only fees for the facilitation technologies and proscribing intimidation in the event of delayed repayment, following Islamic values) (National Sharia Board-Indonesian Ulema Council 2018).…”

Section: Fintech Lending Landscape In Indonesiamentioning

confidence: 99%

Escaping the “devil's trap”: Exploring the role of online social support for fintech lending's over‐indebted Indonesian customers

Herdiansyah

Himawan

2022

Int Social Sci J

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Fintech lending practices have been overgrowing in recent years, but they have also caused a persistent problem of customer over‐indebtedness, including in Indonesia. Debt‐ridden fintech lending customers experience stress constantly thinking about their debt burden and intimidating collection pressures. Social support is known to play an essential role in assisting individuals in coping with pressures. However, studies around this issue are still minimal. This study explores online social support dynamics through a WhatsApp group created for heavily in debt Indonesian fintech loan customers. Twelve customers and one online group staff participated and were interviewed. The study results were organised under three themes of dynamics: emotional support, information support, and interaction support in an online context, where generally, social support facilitated through the WhatsApp group tended to have a positive effect on the customers. Respondents admitted feeling more empowered to solve their debt problems than before joining the group. This study makes an important contribution, particularly in demonstrating the role of online‐based social support in the context of stress due to over‐indebtedness from an Asian perspective, which opportunities for use are increasing.

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Multi-factor fuzzy sets decision system forecasting consumer insolvency risk

Korol

2024

Decision

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The objective of this study is to develop a multi-factor decision system predicting insolvency risk for natural persons with the use of fuzzy sets. Considering that the financial situation of households is affected by various endogenous and exogenous factors, the main assumption of this study is that the system for predicting financial difficulties should not be limited to the use of only a few financial variables concerning consumers, but also include variables describing the environment. The author proposes a system consisting of three different forecasting models that connect the macroeconomic and microeconomic environments. It monitors the economic situation of households by also identifying those environmental variables, which may directly, or indirectly, endanger the consumer, such as unemployment rate (job market situation), inflation and interest rates, exchange rates, or economic situation in the country (GDP growth rate, the dynamics of retail sales, etc.). Moreover, the created cause-and-effect tool is in the form of a flexible application that can be easily adapted to changing economic conditions. Another unique feature of the study is the proposed use of newly developed ratios in household finance, similar to that in financial ratio analysis, which is commonly used in corporate finance. The proposed ratios demonstrated high predictive abilities. The paper also identifies the predictive capabilities of selected macroeconomic variables from the perspective of their impact on the risk of consumer insolvency. The research relies on four samples consisting of a total of 2400 consumers from Taiwan and Poland. The author created three forecasting models separately for the South-East Asian and Central European regions, and two multi-factor systems, each consisting of 1260 decision rules. The findings clearly showed that fuzzy logic is a significantly more effective method compared to traditional models based on classical logic.

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Consumer Debt Prevention and Discharge in the Arabian Gulf

Cited by 4 publications

References 38 publications

Muslim Consumers’ Credit Card Debt Management

Muslim Consumers’ Credit Card Debt Management

Escaping the “devil's trap”: Exploring the role of online social support for fintech lending's over‐indebted Indonesian customers

Multi-factor fuzzy sets decision system forecasting consumer insolvency risk

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