Abstract
Historically, over-indebtedness was a problem to be addressed at the nation-level across the European Union (EU). Today it has become a cross-European topic dealt with at an EU-level. In this chapter, we emphasize the policy measures that can be implemented to reduce excessive debt reliance and the potential implications of such policy measures. The policy measures discussed here include credit market regulation, consumer protection, early identification, and prevention of over-indebtedness. We conclude that coordination between these measures is pivotal in order to provide incentives for both young borrowers and creditors to make sound decisions.
Keywords
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ameriks, J., Caplin, A., Leahy, J., & Tyler, T. (2007). Measuring self-control problems. American Economic Review, 97, 966–972.
Barber, B. M., & Odean, T. (2000). Trading is hazardous to your wealth: The common stock investment performance of individual investors. Journal of Finance, 55, 773–806.
Benati, L., & Surico, P. (2009). VAR analysis and the great moderation. American Economic Review, 99, 1636–1652.
Bhattacharya, U., Hackethal, A., Kaesler, S., Loos, B., & Meyer, S. (2012). Is unbiased financial advice to retail investors sufficient? Answers from a large field study. Review of Financial Studies, 25(4), 975–1032.
Braconier, H., & Palmqvist, S. (2017). Makrotillsynens roll i Sverige. Ekonomisk debatt, 45(4), 56–68.
Breman, A., & Wallin Johansson, I. (n.d.). Makrotillsynens roll i Sverige; utmaningar och komplexitet i en förändrad stabiliseringspolitik (Unpublished Working Paper to be published in the forthcoming volume Tillsyn 2020).
Bruce Ian Carlin, B. I., & Robinson, D. T. (2012). What does financial literacy training teach us? Journal of Economic Education, 43(3), 235–247.
Carbo, S., Gardener, E. P. M., & Molyneaux, P. (2007). Financial exclusion in Europe. Public Money & Management, 27(1), 21–27.
Davydoff, D., Naacke, G., Dessart, E., Jentzsch, N., Figueira, F., Rothemund, M., … Finney, A. (2008, February). Towards a common operational European definition of over-indebtedness. European Commission. Available at http://www.oee.fr/files/study_overindebtedness_en.pdf.
de Toro, S. (2016). Långvarig överskuldsättning Den bortglömda ojämlikheten. Stockholm: Landsorgani-sationen i Sverige.
Elliot, V. (2015). Essays on performance management systems, regulation and change in Swedish banks. Göteborg: Bas Förlag.
Eng Larsson, J., Hallsten, K., & Kilström, M. (2018). Skuldsättning i olika åldersgrupper i Sverige. Staff memo, Sveriges Riksbank, Stockholm. Available at https://www.riksbank.se/globalassets/media/rapporter/staff-memo/svenska/2018/skuldsattning-i-olika-aldersgrupper-i-sverige.
ESRB. (2017). List of national macroprudential authorities and national designated authorities in EU Member States. European Systemic Risk Board.
ESRB. (2018). National measures of macroprudential interest in the EU/EEA (ESRB Macroprudential measures database). Available at www.esrb.europa.eu/national_policy/html/index.en.html.
Ferretti, F., Salomone, R., Sutschet, H., & Tsiafoutis, V. (2016). The regulatory framework of consumer over-indebtedness in the UK, Germany, Italy, and Greece: Comparative profiles of responsible credit and personal insolvency law. Business Law Review, 37(2–3), 64–71 (Part I) and 86–93 (Part II).
Gentile, M., Linciano, N., Lucarelli, C., & Soccorso, P. (2015, May 22). Financial disclosure, risk perception and investment choices: Evidence from a consumer testing exercise (CONSOB Working Papers No. 82). Available at SSRN http://ssrn.com/abstract=2616277.
Henrikson, A.-S. (2016). Överskuldsatt och skyldig – en rättsvetenskaplig analys av konsumentskyddet mot överskuldsättning (ak.avh.). Skrifter från Juridiska institutionen vid Umeå universitet, nr 34.
iff. (2003). Udo Reifner, Johnanna Kiesiläinen, Nick Huls & Helga Springeneer. Consumer overindebtedness and consumer law in the European Union (Final Report).
INSOL. (2001). International, consumer debt report: Report of findings and recommendations. Available at http://www.insol.org/page/38/consumer-debt-report and http://www.insol.org/pdf/consdebt.pdf.
Jappelli, T., & Padula, M. (2013). Investment in financial literacy and saving decisions. Journal of Banking and Finance, 37(8), 2779–2792.
Kilborn, J. J. (2010, August 21). Expert recommendations and the evolution of European best practices for the treatment of overindebtedness, 1984–2010. Available at SSRN https://ssrn.com/abstract=1663108 or http://dx.doi.org/10.2139/ssrn.1663108.
Krumer-Nevo, M., Gorodzeisky, A., & Saar-Heiman, Y. (2017). Debt, poverty, and financial exclusion. Journal of Social Work, 17(5), 511–530.
Larsson, S., Svensson, L., & Carlsson, H. (2016). Digital consumption and over-indebtedness among young adults in Sweden (LUii Reports, Vol. 3). Lund University Internet Institute.
Lennartz, C., Arundel, R., & Ronald, R. (2016). Younger adults and homeownership in Europe through the global financial crisis. Population, Space and Place, 22(8), 823–835.
Lucarelli, C., & Alemanni, B. (2015). Long-range planning attitude in a declining welfare: When individual behaviours inhibit retirement voluntary plans. The European Journal of Finance, 23(5), 407–426.
Lucarelli, C., Brighetti, G., Uberti, P., & Maggi, M. (2015). Risky choices and emotion-based learning. Journal of Economic Psychology, 49, 59–73.
Lucarelli, C., Marinelli N., & Brighetti, G. (2014). Do emotions affect insurance demand? Review of Behavioral Finance, 6(2), 136–154.
Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: An overview. Journal of Pension Economics & Finance, 10(4), 497–508.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44.
Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44, 358–389.
Mavruk, T. (2010). On the importance of information asymmetry: Essays on local bias and managerial myopia. Doktorsavhandling: Göteborgs Universitet.
Mehrotra, A. N., & Yetman, J. (2015, March). Financial inclusion—Issues for central banks. BIS Quarterly Review. Available at SSRN https://ssrn.com/abstract=2580310.
Orton, M. (2009). The long-term impact of debt advice on low income household (Working Paper). Institute for Employment Research, University of Warwick. Available at https://www2.warwick.ac.uk/fac/soc/ier/publications/2010/orton_2010_long_term_debt.pdf.
Ramsay, I. (2012). A tale of two debtors: Responding to the shock of over-indebtedness in France and England—A story from the Trente Piteuses. The Modern Law Review, 75(2), 212–248.
Reinhart, C. M., & Rogoff, K. S. (2009). This time is different: Eight centuries of financial folly. Princeton, NJ: Princeton University Press.
Reinhart, C. M., & Rogoff, K. S. (2013). Banking crises: An equal opportunity menace. Journal of Banking & Finance, 37(11): 4557–4573.
SBA (2018). The mortgage market in Sweden. Available at https://www.swedishbankers.se/media/3906/1809_bolaanemarknad-2018_en.pdf.
SNAO (2015). Överskuldsättning – hur fungerar samhällets stöd och insatser? (RiR 2015:14). Stockholm: Riks-revisionen.
SNAO (2018). Finansiell stabilitet – makrotillsyn på rätt sätt? (RiR 2018:2). Stockholm: Riks-revisionen.
SEA (2007). SMS lån - En kartläggning av unga vuxnas erfarenheter (KFM Rapport, 2007:2). Kronofogden. Available at https://www.kronofogden.se/download/18.44812de6133c5768d6780007932/1371144370145/smslan_2007_2.pdf.
SEA (2008). Alla vill göra rätt för sig: Överskuldsättningens orsaker och konsekvenser. Kronofogden. Available at https://www.kronofogden.se/download/18.44812de6133c5768d6780007930/1371144370107/Slutrapport+Alla+vill+göra+rätt+för+sig+januari+2008.pdf.
SFS (2018:2028). Lag om ändring i Konsumentkreditlagen. Available at https://www.lagboken.se/Lagboken/sfs/sfs/2018/2000-2099/d_3472846-sfs-2018_2028-lag-om-andring-i-konsumentkreditlagen-2010_1846.
Stamp, S. (2012). The impact of debt advice as a response to financial difficulties in Ireland. Social Policy and Society, 11(1), 93–104.
Swedish Government Official Reports. (2013). Överskuldsättning i kreditsamhället? [Over-indebtedness in the credit society?] (Report 78). Stockholm: Fritze.
Valins, O. (2004). When debt becomes a problem: A literature study. Wellington, New Zealand: Strategic Social Policy Group, Ministry of Social Development.
Wolfe, M., Madge, P., & Kruse, J. (2004). Debt advice handbook. London, UK: Child Poverty Action Group. Available at http://www.cpag.org.uk/sites/default/files/CPAG-DAH-sample.pdf.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Elliot, V., Lindblom, T. (2019). Toward Soundness in Provision of Credits and Loans to Young Adults. In: Hauff, J., Gärling, T., Lindblom, T. (eds) Indebtedness in Early Adulthood. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-13996-4_8
Download citation
DOI: https://doi.org/10.1007/978-3-030-13996-4_8
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-13995-7
Online ISBN: 978-3-030-13996-4
eBook Packages: Economics and FinanceEconomics and Finance (R0)