Over-indebtedness and the interplay of factual and mental money management: An interview study

Bernadette Kamleitner, Bianca Hornung and Erich Kirchler

New Zealand Economic Papers, 2011, vol. 45, issue 1-2, 139-160

Abstract: Previous research has shown that money management contributes to over-indebtedness. This article sheds new light on this relation by looking at factual money management and its mental underpinnings, mental accounting. In a conceptual model we propose that fuzzy factual and mental money management practices aggravated by lack of congruency between factual and mental structures play an important role in over-indebtedness. Twenty-five in-depth interviews deliver preliminary support for this proposition. Successful financial control seems to build on efficient and inter-coordinated factual and mental money management. This reduces the willpower necessary for controlling financial behavior and helps to prevent and fight over-indebtedness.

Keywords: debt; money management; mental accounting; self-control (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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DOI: 10.1080/00779954.2011.556075

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