Determinants of Household Debt: A Systematic Review of the Literature
Household debt plays a crucial role in influencing the performance of the economy and its vulnerability to shocks. This study synthesises studies on this topic. We used the systematic literature review technique to analyse 97 studies from the EBSCO, Google Scholars, Sabinet African Journals, SAGE, S...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2025-03-01
|
| Series: | Economies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7099/13/3/76 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849343244286033920 |
|---|---|
| author | Cloudio Kumbirai Chikeya Lungile Ntsalaze |
| author_facet | Cloudio Kumbirai Chikeya Lungile Ntsalaze |
| author_sort | Cloudio Kumbirai Chikeya |
| collection | DOAJ |
| description | Household debt plays a crucial role in influencing the performance of the economy and its vulnerability to shocks. This study synthesises studies on this topic. We used the systematic literature review technique to analyse 97 studies from the EBSCO, Google Scholars, Sabinet African Journals, SAGE, ScienceDirect, Scopus, Springer Link, Taylor and Francis, and Web of Science databases from 2004 to 2024. The results reveal that country-level and household-specific factors are important in explaining debt. We delineate supply-side and demand factors that drive debt. Country-level factors that explain indebtedness include housing prices, unemployment, economic growth, interest rates, inflation, and income levels. At the household level, factors such as education level, behaviour, social status, employment, house prices, income, family size, occupation, wealth, and marital status explain indebtedness. Policies impact loan types differently; therefore, due consideration should be taken and prescriptions should aim to address both supply and demand factors. Future studies should rely on AI-driven methods and techniques that utilise natural language processing capabilities such as sentiment analysis in order to handle large data sets and ensure objectivity. |
| format | Article |
| id | doaj-art-a8d1697d08154bcd8ae62ff7bb5783e3 |
| institution | Kabale University |
| issn | 2227-7099 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj-art-a8d1697d08154bcd8ae62ff7bb5783e32025-08-20T03:43:02ZengMDPI AGEconomies2227-70992025-03-011337610.3390/economies13030076Determinants of Household Debt: A Systematic Review of the LiteratureCloudio Kumbirai Chikeya0Lungile Ntsalaze1Johannesburg Business School, University of Johannesburg, Johannesburg 2092, South AfricaCollege for Business & Economics, University of Johannesburg, Johannesburg 2092, South AfricaHousehold debt plays a crucial role in influencing the performance of the economy and its vulnerability to shocks. This study synthesises studies on this topic. We used the systematic literature review technique to analyse 97 studies from the EBSCO, Google Scholars, Sabinet African Journals, SAGE, ScienceDirect, Scopus, Springer Link, Taylor and Francis, and Web of Science databases from 2004 to 2024. The results reveal that country-level and household-specific factors are important in explaining debt. We delineate supply-side and demand factors that drive debt. Country-level factors that explain indebtedness include housing prices, unemployment, economic growth, interest rates, inflation, and income levels. At the household level, factors such as education level, behaviour, social status, employment, house prices, income, family size, occupation, wealth, and marital status explain indebtedness. Policies impact loan types differently; therefore, due consideration should be taken and prescriptions should aim to address both supply and demand factors. Future studies should rely on AI-driven methods and techniques that utilise natural language processing capabilities such as sentiment analysis in order to handle large data sets and ensure objectivity.https://www.mdpi.com/2227-7099/13/3/76householdindebtednesssystematic literature reviewhouse pricesinterest ratesfamily size |
| spellingShingle | Cloudio Kumbirai Chikeya Lungile Ntsalaze Determinants of Household Debt: A Systematic Review of the Literature Economies household indebtedness systematic literature review house prices interest rates family size |
| title | Determinants of Household Debt: A Systematic Review of the Literature |
| title_full | Determinants of Household Debt: A Systematic Review of the Literature |
| title_fullStr | Determinants of Household Debt: A Systematic Review of the Literature |
| title_full_unstemmed | Determinants of Household Debt: A Systematic Review of the Literature |
| title_short | Determinants of Household Debt: A Systematic Review of the Literature |
| title_sort | determinants of household debt a systematic review of the literature |
| topic | household indebtedness systematic literature review house prices interest rates family size |
| url | https://www.mdpi.com/2227-7099/13/3/76 |
| work_keys_str_mv | AT cloudiokumbiraichikeya determinantsofhouseholddebtasystematicreviewoftheliterature AT lungilentsalaze determinantsofhouseholddebtasystematicreviewoftheliterature |