Self-control and debt decisions relationship: evidence for different credit options

Abstract In recent years, households have become increasingly indebted, which constitutes a matter of concern. Based on sample from the Spanish Survey Financial Competences , this paper examines relationship between self-control and consumer borrowing behaviour and, in so doing, it proposes new multi-item scale individual’s financial matters considers several types debt, thus overcoming main gaps identified previous research. Empirical evidence reveals that, overall, problems lead to more indebtedness. However, comprehensive analyses demonstrated that influence differs across an exhaustive range credit options. regard, lack increases probability taking out unsecured personal loans, loans family or friends, card use. Evidence suggests individuals’ first impulse leads them ask their social circle for loan. Overall, individuals might be tempted get indebted when they cannot make ends meet. usually faces barriers supply perspective, effect decisions shaped not only by demand side but also one.