PSYCHOLOGICAL CONDITIONALITY OF LOAN REPAYMENT PERIODS

A. N. Demin, O. V. Kireeva, E. Yu. Pedanova

Andrey N. Demin.

E‑mail: This email address is being protected from spambots. You need JavaScript enabled to view it. . ORCID 0000-0002-1420-1212

Oxana V. Kireeva.

E‑mail: This email address is being protected from spambots. You need JavaScript enabled to view it. . ORCID 0000-0001-9554-7356

Ekaterina Yu. Pedanova.

E‑mail: This email address is being protected from spambots. You need JavaScript enabled to view it. . ORCID 0000-0001-6387-220X

Kuban State University, Stavropolskaya Str., 149, Russia, 350040, Krasnodar.

Acknowledgements. The research was carried out through the financial support of the Russian Foundation for Basic Research, the research project No. 18-013-01176 А, (“Psychological Readiness to Overcome Difficulties in a Lending Situation”).

Abstract. The temporal characteristics of credit use and the impact made on them by the psychological characteristics of a person are discussed. The concept of psychological readiness to repay the loan is used. The purpose of the study is to determine the effect of the components of psychological readiness to repay the loan on the choice of loan repayment terms and the duration of delay in payments, if any. 209 people who had either a consumer loan or a mortgage loan were surveyed. It has been established that the delay in payment is closely related to anxiety about both the future and the present, provided that this connection is much stronger in the group with mortgage loans than in the one with consumer loans. This fact can be explained, firstly, by the higher potential damage from mortgage non-repayment, and secondly, by the difficulty of returning to the rhythmic loan repayment due to the higher monthly payments. Duration of delay in loan payment has a wider and more diverse psychological conditionality as compared to the loan term. At the same time, duration of delay in mortgage loan payment has a greater number of connections with psychological variables as compared to a consumer loan. It is concluded that violation of credit discipline is based on difficulties in informational and regulatory support of activity and is supported by the depreciation of employment as it is. The results of the regression analysis made it possible to clarify the conclusion and they indicate that the predictors of duration of delay in consumer loan payments are the lack of readiness for savings and the lack of cognitive elaboration of financial decisions. As for the mortgage loan, the main predictor is the lack of readiness for savings.

Keywords: consumer loan, mortgage loan, loan repayment term, duration of delay in loan payments, psychological readiness to repay the loan

DOI: 10.31429/26190567-20-4-210-222