The Able Worry More? Debt Delinquency, Financial Capability, and Financial Stress

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dc.contributor.authorXiao, Jing Jian
dc.contributor.authorKim, Kyoung Tae
dc.contributor.otherUniversity of Rhode Island
dc.contributor.otherUniversity of Alabama Tuscaloosa
dc.date.accessioned2023-09-28T19:32:04Z
dc.date.available2023-09-28T19:32:04Z
dc.date.issued2022
dc.description.abstractResearch on the link between debt and financial stress is emerging. This study was one of the first attempts to examine the association between debt delinquency and financial stress and the moderating role of financial capability in the association. Delinquencies in three types of debts were examined: (a) mortgage, (b) credit card, and (c) student loan. With data from the 2018 U.S. National Financial Capability Study, multivariate regression results showed that payment delinquencies of mortgage, credit card and student loans were positively, while financial capability was negatively associated with financial stress. Further, surprisingly, the results implied that among consumers with debt delinquencies, financial capability may increase financial stress. If both financial capability's direct and interactive effect were considered, financial capability may decrease financial stress at much smaller rates than those without debt delinquencies. The situation was the worst among consumers with multiple delinquencies, in which the potential net effect of financial capability on financial stress was positive. The results of this study have implications for consumer financial service practices.en_US
dc.format.mediumelectronic
dc.format.mimetypeapplication/pdf
dc.identifier.citationXiao, J. J., & Kim, K. T. (2021). The Able Worry More? Debt Delinquency, Financial Capability, and Financial Stress. In Journal of Family and Economic Issues (Vol. 43, Issue 1, pp. 138–152). Springer Science and Business Media LLC. https://doi.org/10.1007/s10834-021-09767-3
dc.identifier.doi10.1007/s10834-021-09767-3
dc.identifier.orcidhttps://orcid.org/0000-0003-3252-5672
dc.identifier.orcidhttps://orcid.org/0000-0002-0673-721X
dc.identifier.urihttps://ir.ua.edu/handle/123456789/11398
dc.languageEnglish
dc.language.isoen_US
dc.publisherSpringer
dc.subjectDebt delinquency
dc.subjectFinancial stress
dc.subjectFinancial capability
dc.subjectNational Financial Capability Study
dc.subjectMENTAL-HEALTH
dc.subjectLIFE SATISFACTION
dc.subjectSTUDENT LOANS
dc.subjectLITERACY
dc.subjectBEHAVIORS
dc.subjectEDUCATION
dc.subjectDISTRESS
dc.subjectIMPACT
dc.subjectCYCLE
dc.subjectEconomics
dc.subjectFamily Studies
dc.titleThe Able Worry More? Debt Delinquency, Financial Capability, and Financial Stressen_US
dc.typeArticle
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