Psycho-social factors impacting credit acquisition and use by college students

In the past decade, evidence has been accumulated on the relationship between impulsivity and over‐indebtedness. Nevertheless, the magnitude of such association is still considered marginal compared to traditional socio‐demographic and economic factors, with the important consequence that impulsivity continues to be ignored in policy interventions for preventing and dealing with over‐indebtedness. The aim of this study was to meta‐analyse existing studies to answer the question: Are higher levels of impulsivity associated with greater over‐indebtedness? Scopus and Web of Science databases were searched for English language studies. Seventeen studies were eligible for the analysis. The random effect model yielded a significant positive association between impulsivity and over‐indebtedness (Hedges' g = .40). Type of over‐indebtedness (debt holding vs. unmanageable debt) and work status (percentage of employed individuals) significantly moderated this association. Results are discussed in terms of implications and recommendations for future research, policy and practice.

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“… Adapted from Rook and Fisher (), Pirog and Roberts (), Nga, Yong, and Sellappan (), Wang and Xiao (), and Peltier et al (). …”

Section: Methodsmentioning

confidence: 99%

A meta‐analytic investigation of consumer over‐indebtedness: The role of impulsivity

Frigerio

Ottaviani

Vandone

2020

Int J Consumer Studies

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“…Because of differences in measures of compulsive buying and sampling frames used, the prevalence of compulsive buying is uncertain (Harvanko et al, 2013;Maraz et al, 2015). For example, Faber and 2005;Ritzer, 1995;Roberts, 1998;Roberts & Jones, 2001;Wang & Xiao, 2009; but see Peltier, Pomirleanu, Endres, & Markos, 2013). Compulsive buyers also are more likely to report overspending which, in turn, contributes to credit card debt and, in some cases, bankruptcy (Black, 2007;Joireman, Kees, & Sprott, 2010;Roberts & Pirog, 2004).…”

Section: Prevalencementioning

confidence: 99%

“…Compulsive buyers, in comparison to noncompulsive buyers, are more likely to hold a larger number of credit cards and carry larger credit card balances (Lachance, ; O'Guinn & Faber, ; Park & Burns, ; Ritzer, ; Roberts, ; Roberts & Jones, ; Wang & Xiao, ; but see Peltier, Pomirleanu, Endres, & Markos, ). Compulsive buyers also are more likely to report overspending which, in turn, contributes to credit card debt and, in some cases, bankruptcy (Black, ; Joireman, Kees, & Sprott, ; Roberts & Pirog, ).…”

Section: Introductionmentioning

confidence: 99%

The impact of money attitudes and global life satisfaction on the maladaptive pursuit of consumption

Harnish

Bridges

Nataraajan

et al. 2018

Psychology and Marketing

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The goal of this research was to examine how money attitudes and global life satisfaction relate to and predict compulsive buying among young adults. Using a Prolific Academic sample, 265 adults between the ages 18 and 25 completed the Money Attitudes Scale, Money Ethics Scale, Spendthrift‐Tightwad Scale, Satisfaction with Life Scale, and the Richmond Compulsive‐Buying Scale. As expected, motives toward saving and spending money as assessed by the Money Attitude Scale and pain of paying as assessed by the Spendthrift‐Tightwad Scale were correlated and predicted compulsive buying. However, these findings are qualified by an interaction effect such that those who held negative attitudes toward saving money and experienced little pain of paying were compulsive buyers. Theoretical and practical implications for maladaptive purchasing behavior among young adults are discussed.

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“…Peltier et al . () find that debt aversion is associated with higher levels of debt rather than lower (also see Bachan, ), posing questions about causality, while students who reported being impulsive and valuing their social status were more likely to borrow.…”

Section: Literature Reviewmentioning

confidence: 99%

Individual and Social Influences on Students’ Attitudes to Debt: a Cross‐National Path Analysis Using Data from England and New Zealand

Harrison

Agnew

2016

Higher Education Quarterly

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This study examines the construction of debt attitudes among 439 first-year undergraduates in England and New Zealand. It works from a conceptual model that predicts that attitudes will be partly determined by a range of social factors, mediated through personality and 'financial literacy'. Path analysis is used to explore this model. The proposed model was found to be basically sound, with some notable negative findings. Socio-economic status was found to have a negligible role in determining debt attitudes, while the role of financial literacy was limited to reducing the likelihood of seeing debt as useful for lifestyle expenditure. Debt anxiety was found to be higher among students with a general predisposition to anxiety and inversely related to viewing student debt as a form of educational investment. It is concluded that student debt attitudes are multidimensional and individualised, challenging simplistic ideas of debt aversion in earlier literature.

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Psycho-social factors impacting credit acquisition and use by college students

Cited by 21 publications

References 58 publications

A meta‐analytic investigation of consumer over‐indebtedness: The role of impulsivity

A meta‐analytic investigation of consumer over‐indebtedness: The role of impulsivity

The impact of money attitudes and global life satisfaction on the maladaptive pursuit of consumption

Individual and Social Influences on Students’ Attitudes to Debt: a Cross‐National Path Analysis Using Data from England and New Zealand

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