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|The Relationship of Debt Management, Compulsive Buying Behavior and Financial Well-BeingYear: 2017|
Kuknor S. and Sharma A.
Purpose: Debt is an economic matter but its psychological aspect is not empirically tested in Indian context. The purpose of this paper is to examine the relationship of individual’s attitude towards debt management financial well-being and the relationship of compulsive buying behavior with financial well-being. Methodology: This research uses quantitative techniques to examine the relationship between individual’s attitude towards debt management, compulsive buying behavior and financial well-being. This relationship was tested on a sample of 190 working professionals from age group of 22 – 60 years. Results & Discussions: After applying suitable statistical tools, results indicated that higher the positive attitude towards debt, higher is the financial well-being. Compulsive buying behavior is negatively associated with financial well-being i.e individuals engaging in compulsive buying face financial distress. The respondents showed lack of awareness of the term “debt” and expressed their interest to increase their financial knowledge. Research implications: The findings have empirical and applied implications. Empirically the study is an addition to the understanding of financial behavior. Psychological and economic aspects of one’s daily life influences their attitude towards how they perceive financial stress vs well-being. Psychologists must focus more on how attitudinal aspects play an important role in an individual’s financial and personal well-being. Originality/value: The study highlights attitude towards debt management and compulsive buying as predictors to financial well-being. It is recommended in light of the findings mentioned above that it is important to create awareness of debt management and reduce the taboo that it is not a “bad” phase in your financial life; One must know how to manage debt.