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.