The impacts of emotions and personality on borrowers’ abilities to manage their debts

This paper examines the impacts of retail borrowers’ emotions and personality traits on their abilities to engage in appropriate responses when things unexpectedly go wrong they get into debt repayment difficulties. We establish several scenarios where borrowers are hit with unforeseen circumstances that affect make loan payments we classify evaluate riskiness strategies state would adopt those situations. Via an extensive on-line survey conducted UK, show who were most comfortable about taking debts first place, neurotic tendencies, believe have control over events rather than being controlled by them, more likely undertake high risk faced issues ability meet interest costs. also find respondents identify as feeling excited, alert or guilty, well younger single renters, opt for risky approaches. Our findings potentially important implications lenders, regulators counselling services regarding types people troubles. • examine factors affecting borrowers' manage debts. focus obtain data from UK. Neuroticism internal locus lead strategies. Young, rentals use