Connect * Empower * Impact


2019 AFCPE® Research and Training Symposium


AFCPE Pre-Symposium: Sunday, November 17 - Tuesday, November 19
AFCPE Symposium: Tuesday, November 19 - Thursday, November 21
Schedule Subject to Change

Thursday, November 15th, 2018
Category: Consumer Debt
Household Collective Decision-Making and Consumer Debt
This session presents the findings from a recent study of household consumer debt using dyadic data. Household consumer borrowing was modeled as a function of collective bargaining between two partners with different levels of future orientation. An accountant-shopper collective bargaining framework was developed for this purpose. Data from De Nederlandsche Bank Household Survey was used because it includes individual-level responses from each member of the household. Logistic regression was used to model the likelihood of a household reporting the use of consumer debt. Consistent with theoretical predictions, findings suggest that the bargaining power of the future-oriented accountant had a negative influence on the use of consumer debt; and the bargaining power of the present-oriented shopper had a positive influence on the use of consumer debt. Implications for practice and future research are discussed.
Implications for Practitioners
:
One of the key implications of this research is that consumer indebtedness is not an individual problem, but a family problem. The motivations for using consumer debt are dependent, in part, on household dynamics. As such, interventions for helping clients achieve lasting financial well-being by limiting and managing their consumer debt need to be targeted at the whole family, not just the individual.