Economic Pressure and Debt Decision-Making of the Customer's Family Bank Keliling/Bank Emok

Abstract

Difficult economic conditions often force families to borrow money from bank keliling/bank emok. This study analyzes the effect of family characteristics, debt characteristics, economic pressure before debt, and debt decision-making on economic pressure after debt. In particular, this study distinguishes economic pressures before and after debt. The research design used is a retrospective and cross-sectional study involving 60 wives of customers of bank keliling/bank emok selected by simple random sampling. This research is located in Pulosari Village and Margamekar Village, Pangalengan District, Bandung Regency, West Java. The correlation test results show a significant positive relationship between objective economic pressure before debt and debt decision-making. Debt decision-making is positively related to objective and subjective economic pressure after debt. The economic pressure after the debt is higher than before the debt. This study concludes that the higher objective economic pressure before debt and the greater reason for debt, the higher economic pressure after debt. The study results show the importance of families raising awareness about the risks of debt so that there is no increase in economic pressure.

Family Physical Economic Strength of Bank Emok Customer: An Analysis the Influence of Debt Behavior, Lifestyle, Economic Pressure, and Family Financial Conditions

“…This indirectly made the debt interest larger than the stipulated interest rate (>25%). This is relatively higher than the research by Rosanti and Sunarti (2023), who found that Bank Emok customers were charged 20 percent to 25 percent interest. Bank Emok offers debt limits starting from IDR 2,000,000 and gives customers the right to top up, i.e., increase the debt amount when they have paid half (50%) of the previous installment.…”

“…Families with debts worth more than half the value of their assets show high economic pressure (Firdaus & Sunarti, 2009). Rosanti and Sunarti (2023) found that family economic pressure increased after borrowing from Bank Emok. Previous research has found that family welfare is affected by economic pressure (Laily & Sunarti, 2022;Sunarti, 2018;Sunarti et al, 2021).…”