Exploring emotions and irrationality in attitudes towards consumer indebtedness: Individual perspectives of UK payday loan consumption

Abstract

The aim of this research is to explore contemporary consumers’ emotions and irrationality in attitudes towards indebtedness, using the UK payday loan industry as a focus point. UK consumers’ have recently experienced a significant financial crisis, the result of which is expected to alter consumers’ spending, saving and borrowing habits. By using existential-phenomenological interviews to discuss individuals’ experiences of these activities, we observe some of the key issues emerging from this context. A primary theme is the influence of emotions on decision making, and how this shapes ‘irrationality’. This article aims to draw attention to this emotive thinking, which may be significant in thinking about how payday loans are communicated to users in the future.

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Acknowledgements

The authors are indebted to Dr Julie Robson, Doctoral Colloquium Conference Chair; Professor Jillian Farquhar, Doctoral Colloquium Session Chair; the anonymous reviewers for AM 2014, Bournemouth University; and the anonymous reviewers for this special issue of JFSM. Their suggestions and guidance have been invaluable in the preparation of this article and are greatly appreciated.

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Brown, J., Woodruffe-Burton, H. Exploring emotions and irrationality in attitudes towards consumer indebtedness: Individual perspectives of UK payday loan consumption. J Financ Serv Mark 20, 107–121 (2015). https://doi.org/10.1057/fsm.2015.9

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Keywords

  • consumer behavior
  • credit
  • debt
  • borrowing
  • payday loans
  • emotion