Is Financial Capability Related to the Effective Use of Debt in Australia?

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Author(s)
Ajzerle, Sanja
Brimble, Mark
Freudenberg, Brett
Year published
2013
Metadata
Show full item recordAbstract
Australians' high use of personal debt is, in part, attributable to the relaxation of the financial services regulation. There is concern that while debt has the potential to increase a person's wealth, if used ineffectively it can have the opposite effect. This paper details a study of 680 Australians to ascertain whether their financial capability is related to the effective use of personal debt. The findings suggest that it appears people with greater financial capability are more likely to use debt effectively.Australians' high use of personal debt is, in part, attributable to the relaxation of the financial services regulation. There is concern that while debt has the potential to increase a person's wealth, if used ineffectively it can have the opposite effect. This paper details a study of 680 Australians to ascertain whether their financial capability is related to the effective use of personal debt. The findings suggest that it appears people with greater financial capability are more likely to use debt effectively.
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Journal Title
Australasian Accounting Business & Finance Journal
Volume
7
Issue
3
Publisher URI
Copyright Statement
© 2013 University of Wollongong. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Banking, Finance and Investment not elsewhere classified
Accounting, Auditing and Accountability
Banking, Finance and Investment
Business and Management