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ERIC Number: EJ1162059
Record Type: Journal
Publication Date: 2017
Pages: 17
Abstractor: As Provided
ISSN: ISSN-1052-3073
Poverty Levels and Debt Indicators among Low-Income Households before and after the Great Recession
Kim, Kyoung Tae; Wilmarth, Melissa J.; Henager, Robin
Journal of Financial Counseling and Planning, v28 n2 p196-212 2017
This study analyzed the debt profile of low-income households before and after the Great Recession using the 2007, 2010, and 2013 Survey of Consumer Finances (SCF). We used Heckman selection models to investigate three debt characteristics: (a) the amount of debt, (b) debt-to-income ratio, and (c) debt delinquency. Before and after the Great Recession, results from the selection stage showed the probability of holding debt for households increased as their income level increased (moving into less severe poverty categories); results from the outcome stage indicated households in the most severe poverty category (below 100% of poverty threshold) were less likely to meet debt-to-income ratio guidelines. Following the Great Recession, these lowest income households were more likely to have higher debt and debt delinquency problems.
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Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A