Debt, Financial Vulnerability, and Repayment Behaviour in Older Canadian Households

2021 ◽  
Author(s):  
Jie Zhou
Keyword(s):  
Credit Cards ◽  
Minimum Amount ◽  
Financial Vulnerability ◽  
Mortgage Debt ◽  
Important Indicator ◽  
Household Characteristics ◽  
Income Ratio ◽  
Debt Payment

Earlier research has documented that debt at older ages has increased significantly in Canada over the period from 1999 to 2016. In this article, we explore the consequences of a growing proportion of older Canadian households experiencing financial vulnerability. After controlling for household characteristics, we find among older households that a high debt-to-asset ratio and very low liquid wealth are significantly and positively associated with skipping or delaying a mortgage or non-mortgage debt payment and with usually paying the minimum amount or less on credit cards in the previous year. The debt-to-income ratio, however, is not an important indicator of financial vulnerability for older households.

scholarly journals Consumer financial vulnerability: identifying transmission linkages that could give rise to higher levels of consumer financial vulnerability

2019 ◽  
Vol 19 (1) ◽  
pp. 112-136 ◽  
Author(s):  
B De Clercg ◽  
J A Van Tonder ◽  
C J Van Aardt
Keyword(s):  
South Africa ◽  
Vulnerability Index ◽  
Disposable Income ◽  
Coefficient Of Determination ◽  
Data Series ◽  
Strong Impact ◽  
Financial Vulnerability ◽  
Transmission Path ◽  
Income Ratio ◽  
Prime Rate

Several macroeconomic indicators point to high consumer financial vulnerability in South Africa. These include, inter alia, a relatively high household debt-to-disposable income ratio, household consumption expenditure outstripping household disposable income and a declining real household net wealth-to-disposable income ratio. 12In a 2009 study, the first level of possible predictors of consumer financial vulnerability was identified. However, no study has been conducted in South Africa to establish the transmission path of consumer financial vulnerability. This paper attempts to identify such a transmission path by determining the order in which the four aspects of the consumer financial vulnerability index, namely consumer income, expenditure, savings and debt servicing vulnerability, impact on one another, making consumers more vulnerable. This was done by means of an econometric modelling technique called Vector Auto regression (VAR) using consumer financial vulnerability data series covering the period Q2 2009 to Q2 2012. 13The VAR results show that expenditure vulnerability received the highest coefficient of determination score. This indicates that expenditure problems are the Achilles’ heel of South African households, which activates the postulated consumer financial vulnerability index (CFVI) transmission path. To determine the extent to which other macroeconomic variables impact on the postulated CFVI transmission path, a consumer price index (CPI) time series was entered exogenously into the existing VAR equation. It appears from the results obtained that the exogenous 113 Consumer financial vulnerability inclusion of CPI in the model made a dramatic difference with respect to income and expenditure vulnerability. By including the prime lending rate variable exogenously in the CFVI transmission path, the strong impact of the prime rate on expenditure vulnerability became evident. Finally, by adding the expanded unemployment variable exogenously to the CFVI transmission path in addition to the CPI and prime rate variables, debt servicing vulnerability was strongly impacted. From the CFVI transmission path findings, it became evident that consumers are not able to afford their required necessities, which leads to their becoming expenditure vulnerable. If consumers cannot generate more income to compensate, they become income vulnerable. They draw on their savings to finance the excess expenditure and become savings vulnerable, and if they cannot afford the necessary credit they require to finance their expenditure and have no savings left, they become debt servicing vulnerable

scholarly journals KAJIAN TENTANG PENGATURAN SYARAT KEPAILITAN MENURUT UNDANG-UNDANG NOMOR 37 TAHUN 2004

2014 ◽  
Vol 26 (1) ◽  
pp. 1
Author(s):  
Tata Wijayanta
Keyword(s):  
Minimum Amount ◽  
Court Decisions ◽  
Debt Payment

Article 2 paragraph (1) of the Act Number 37 of 2004 on Bankruptcy and Postponement of the Debt Payment Obligation does not stipulate the minimum amount of the debt for declaring a state of bankruptcy but only requires the existence of two debtors where one of the debts are found overdue. The Act that the only considerable condition has been ‘the unwillingness to pay the obligation” instead of the “incapability to pay” of the debtor. Also, the minimum amount of the debt must be determined in order to avoid another court decisions that awarded the request of bankruptcy whereas the debtor is actually capable to pay the obligation. Pasal 2 ayat (1) Undang-Undang Nomor 37 Tahun 2004 tentang Kepailitan dan Penundaan Kewajiban Pembayaran Utang tidak mengatur minimal jumlah utang untuk mengajukan permohonan pailit. Untuk mengajukan kepailitan hanya diperlukan dua orang kreditur dan salah satu utangnya tidak dibayar pada waktunya, sehingga hanya mendasarkan pada ketidakmauan (unwilling) dari si debitur dan bukan pada kemampuan (unable) debitur dalam membayar utang. Minimal jumlah utang ini perlu diatur sehingga kemudian tidak akan terjadi lagi putusan-putusan kepailitan terhadap debitur yang sebenarnya mampu dalam membayar utang.

The Transactions Demand for Credit Cards

2007 ◽  
Vol 7 (1) ◽  
Author(s):  
Kathleen W. Johnson
Keyword(s):  
Credit Card ◽  
Consumer Credit ◽  
Credit Cards ◽  
Credit Card Debt ◽  
Financial Vulnerability ◽  
Short Term ◽  
Payment Instruments ◽  
The Cost ◽  
The Relationship

Abstract I argue that the measure of credit card debt used by researchers has grown rapidly in part because it captures debt arising from transactions in which a credit card is used because of its advantages over other payment instruments. Increases in debt stemming from such use may not signal greater household financial vulnerability if households are willing and able to repay this short-term debt. However, it may suggest that the cost of using credit cards to pay for purchases has declined relative to other payment instruments. I conclude that had transactions demand remained at its real 1992 levels, rather than growing almost 15 percent per year, measured credit card debt would have grown a bit less than 1 percentage point slower per year between 1992 and 2001. Moreover, I show that removing transactions demand from aggregate consumer credit can alter conclusions about the relationship between credit and consumption.

Mortgage debt and household vulnerability

2016 ◽  
Vol 9 (3) ◽  
pp. 400-420 ◽  
Author(s):  
M. Teresa Sánchez-Martínez ◽  
Jose Sanchez-Campillo ◽  
Dolores Moreno-Herrero
Keyword(s):  
Financial Crisis ◽  
Protective Factor ◽  
Family Income ◽  
Financial Vulnerability ◽  
Mortgage Debt ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
Family Head ◽  
Vulnerable Households ◽  
Economic And Financial Crisis

Purpose This paper aims to study the financial vulnerability of the Spanish households derived from their primary residence mortgage debt payments. This paper shown as the economic and financial crisis triggered after the burst of the housing bubble brought an unemployment shock and a fall in the disposable family income, which alarmingly aggravated the financial vulnerability of the mortgaged households. Consequently, the number of financially vulnerable households almost doubled. Design/methodology/approach Econometric model of discrete election. Findings The most vulnerable households – and therefore those with a higher risk of mortgage payment default – are those whose family head is a married and self-employed female. In contrast, in social housing the mortgaged households have been less vulnerable in the context of economic and financial crisis and unlike what would have been initially expected, higher education levels have not acted as a protective factor against households’ financial vulnerability. Originality/value There is a great need to understand how the financial health of the mortgaged families that bought their primary residence has deteriorated in a context of significant changes in macroeconomic conditions. This need is specially pressing in a country such as Spain which is one of the OECD’s countries with a higher rate of household property and which shows a sector of highly mortgaged households.

Keeping Credit Cards on File: FAQ

2012 ◽  
Vol 42 (4) ◽  
pp. 68
Author(s):  
JOSEPH S. EASTERN
Keyword(s):  
Credit Cards

Perbandingan Linieritas Dalam Pendeteksian Faktor-Faktor Yang Mempengaruhi Angka Kematian Bayi Di Provinsi Aceh

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Desfira Ahya ◽  
Inas Salsabila ◽  
Miftahuddin
Keyword(s):  
Mortality Rate ◽  
Infant Mortality ◽  
Linear Model ◽  
Health Workers ◽  
Additive Model ◽  
Infant Mortality Rate ◽  
Mortality Data ◽  
Important Indicator ◽  
Penalized Spline ◽  
Aceh Province

Angka Kematian Bayi/ Infant Mortality Rate (IMR) merupakan indikator penting dalam mengukur keberhasilan pengembangan kesehatan. Nilai IMR juga dapat digunakan untuk mengetahui tingkat kesehatan ibu, kondisi kesehatan lingkungan dan secara umum, tingkat pengembangan sosio-ekonomi masyarakat. Penelitian ini bertujuan untuk memperoleh model IMR terbaik menggunakan tiga pendekatan: Model Linear, Model Linear Tergeneralisir dan Model Aditif Tergeneralisir dengan basis P-spline. Sebagai tambahan, berdasarkan model tersebut akan terlihat variabel yang mempengaruhi tingkat kematian bayi di provinsi Aceh. Penelitian ini menggunakan data jumlah kematian bayi di tahun 2013-2015. Data dalam penelitian ini diperoleh dari Profil Kesehatan Aceh. Hasil menunjukkan bahwa model terbaik dalam menjelaskan angka kematian bayi di provinsi Aceh tahun 2013-2015 ialah Model Linear Tergeneralisir dengan basis P-spline menggunakan parameter penghalusan 100 dan titik knots 8. Faktor yang sangat mempengaruhi angka kematian ialah jumlah pekerja yang sehat.   Infant mortality rate (IMR) is an important indicator in measuring the success of health development. IMR also can be used to knowing the level of maternal health, environmental health conditions and generally the level of socio-economic development in community. This research aims to get the best model of infant mortality data using three approaches: Linear Model, Generalized Linear Model and Generalized Additive Model with Penalized Spline (P-spline) base. In addition, based on the model can be seen the variables that affect to infant mortality in Aceh Province. This research uses data number of infant mortality in Aceh Province period 2013-2015. The data in this research were obtained from Aceh’s Health Profile. The results show that the best model can be explain infant mortality rate in Aceh Province period 2013-2015 is GAM model with P-spline base using smoothing parameter 100 and knots 8. Factor that high effect to infant mortality is number of health workers.

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