Consumer Debt Delinquency over Life Cycle Stages

Jing Jian Xiao and Rui Yao

No 2011-WP-18, NFI Working Papers from Indiana State University, Scott College of Business, Networks Financial Institute

Abstract: Consumer debt delinquency, as measured by being 60 or more days late in in debt payment, is an indicator of financial ill health. Using six datasets of the 1992-2007 U.S. Surveys of Consumer Finances, this study examines consumer debt delinquency over life cycle stages. Inspired by previous research (Du & Kamakura, 2006), fifteen life cycle stages are defined by household head’s age, marital status, and presence and age of children. Multivariate logistic results show that young couples status, and presence age of children. Multivariate logistic results show that young couples and singles with children aged 7 or older and middle aged singles with children aged 15 or older are found to have the highest risk of debt delinquency. Findings suggest that presence and age children are have the highest risk of debt delinquency. Findings suggest that presence and age of children are important factors affecting consumer debt delinquency, which should be considered in public policies that aim to improve consumer financial well-being.

Keywords: Consumer debt; debt delinquency; life cycle behavior; Survey of Consumer Finance (search for similar items in EconPapers)
Pages: 32 pages
Date: 2011-08
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Citations: View citations in EconPapers (1)

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