par Schicks, Jessica
Référence Journal of development studies, 49, 9, page (1238-1255)
Publication Publié, 2013-09
Article révisé par les pairs
Résumé : This article measures the over-indebtedness of micro-borrowers. It defines over-indebtedness from a customer-protection perspective, based on the borrowers' sacrifices. We analyse the sacrifices borrowers experience and find that 30 per cent of borrowers are over-indebted. We then test risk management indicators of debt problems as predictors of over-indebtedness. Over-indebtedness is strongly related to delinquency and the debt-to-income ratio but not to debt amounts or to multiple borrowing. Although our model correctly predicts 72.6 per cent of cases, even the best indicators identify only a few over-indebted borrowers. Risk management is not enough to protect customers against over-indebtedness but the industry needs to measure customer experiences directly. © 2013 Copyright Taylor and Francis Group, LLC.