Business Economics

, Volume 45, Issue 4, pp 266–276

Fueling the Credit Crisis: Who Uses Consumer Credit and What Drives Debt Burden?

  • Diane K Schooley
  • Debra Drecnik Worden
Original Article

DOI: 10.1057/be.2010.25

Cite this article as:
Schooley, D. & Worden, D. Bus Econ (2010) 45: 266. doi:10.1057/be.2010.25


Excessive household debt contributed to the worst recession in decades. Insights about borrowing and spending behavior can inform economic recovery forecasts, policy decisions, and financial education. This study identifies life cycle and credit attitude as key determinants of who uses debt. Younger households are more likely to borrow for consumption, as are those who believe that it is all right to borrow to purchase luxury goods or cover living expenses. Furthermore, households that condone borrowing for these purposes have a higher consumer debt burden. Debt capacity (or creditworthiness) and financial discipline are also significant factors in determining household debt use.


consumer debt credit attitude personal savings 

Copyright information

© National Association for Business Economics 2010

Authors and Affiliations

  • Diane K Schooley
  • Debra Drecnik Worden

There are no affiliations available

Personalised recommendations