The Impact of Behavioral Factors on Propensity Toward Indebtedness

This paper aims to study the impact of behavioral factors on propensity toward indebtedness. Measurement instrument in this study which was administered to the sample was a questionnaire comprising 41 questions. Results show that financial literacy, risk behavior, money value and materialism have positive impact on propensity toward indebtedness. Risk perception has a negative impact on propensity toward indebtedness. The relationship between negative emotions caused by indebtedness has negative impact on risk perception but positive impact on risk behavioral. Money values have positive impact on materialism and finally, indebtedness shows negative impact on emotions. The tests reveal a significant difference in the level of debt according to demographic factors.