Financial Literacy and Debt

  • Anders CarlanderEmail author
  • Jeanette Carlsson Hauff


Given the empirical evidence of the effect of financial literacy on a number of debt-related financial behaviors, such as e.g., mortgage-related decisions and use of credit cards, the construct of financial literacy is defined (including both level of objective knowledge and individuals’ own perception of level of knowledge) and discussed, both in general and connected to borrowing decisions. Together with age, gender, education, and income, the impact of financial literacy on a number of variables (including choice of variable or fixed mortgage rates, use of credit cards and use of pawn shops) is assessed and discussed. The connection between literacy and indebtedness for the group of young adults is also specifically addressed.


Financial literacy Financial knowledge Borrowing decision Credit cards Interest rates 


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of PsychologyUniversity of GothenburgGöteborgSweden
  2. 2.School of Business, Economics and LawUniversity of GothenburgGöteborgSweden

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