Volume: 19 Issue-01 (January-June) 2024

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AN EMPIRICAL ANALYSIS ON DETERMINANTS OF HOUSEHOLD DEBT

ABSTRACT

This paper Investigates the drop in income can make it difficult to manage both their ongoing spending and their regular repayments, households with debt may be more vulnerable when confronted with an income shock. The increase in household debt will be beneficial for welfare. According to the life cycle hypothesis the points of desire households can be borrow for their smooth consumption for their lifetimes and also for the purchase of durable goods like houses or cars. The households can borrow according to the reduced incomes and also in recessions and debts can be paid in certain period of highest income. According to the smoothing consumption of the entire lifetimes, purchase of durable goods can be borrow through ability of households depth in the neighbourhood's financial market, standard of credit. This paper studies about the elements impacting household debt and objectives are framed. The study presents about the significant variables that have major influence in the house hold debt.

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