Autor: Sally Kreander

2018 - Bachelor’s thesis International Business Administration, Finance

Extract of the Introduction

Households’ financial mismanagement is a topical subject today. Growing amount of literature and data (Schicks 2012; Angel, Heizmann 2015; Du Caju et al. 2016;) shows that people have an excessive amount of debt and that has negative consequences. There are unfavorable impacts to individuals, financial institutions, and the whole society. Primarily, the suffer is biggest for individuals whose everyday life might not be the same after over-indebtedness and that affect entire household long-term. The consequences might be, not only economical but also psychological to the household (Gutiérrez-Nieto et al. 2016). Concerning that, it is essential to research the problem more and find ways to take care of the complex topic over various studies.

The interest to study this topic through financial experts and compare their opinions to current literature on the subject of drivers and prevention factors of households’ over-indebtedness arise because there can be a lot to learn from the comparison and possibility to find new aspects to resolve the problematic topic. The more understanding to the problematic phenomenon the better to find resolutions to manage it. Admittedly, previous researches on the subject of households over indebtedness have noticed differences between households and experts viewpoints (Gutiérrez-Nieto et al. 2016; Ericksen et al. 2014). It has often resulted that experts experience and knowledge should be researched more while households blame uncontrolled factors. Experts different opinions and advances, for example how to prevent over-indebtedness in the first hand are important. This suggests that in this study, the focus is on experts voices which may obtain new findings which are not covered by the literature yet.