THE USE AND ABUSE OF CONSUMER-CREDIT - APPLICATION OF PSYCHOLOGICAL THEORY AND RESEARCH

This study explored whether theory and research in consumer behavior, psychology, and substance abuse can distinguish between consumers who can or cannot use consumer credit effectively. The goal of this study was to develop an integrative profile of people with credit-related problems, with particular interest paid to the additional predictive ability of psychological variables beyond that provided by background characteristics and adverse life events. Unsuccessful credit users (N = 69) displayed greater external locus of control, lower self-efficacy, viewed money as a source of power and prestige, took fewer steps to retain their money, displayed lower risk-taking and sensation-seeking tendencies, and expressed greater anxiety about financial matters than successful users ( N = 62). Furthermore. it was found that psychological variables significantly increased the ability to identity group membership correctly. Recommendations are made regarding how the development of credit-related problems may be studied in order to predict and perhaps prevent their occurrence.