“the Psychology Of Borrowing: Emotional Impacts Of Student Loans” – Open Access Policy Institutional Program Open Access Special Issues Guidelines Editorial Process Research and Publishing Ethics Article Processing Fees Awards Testimonials
All articles published by are made available immediately worldwide under an open access license. No special permission is required to reuse all or part of the article published by , including figures and tables. For articles published under a Creative Common CC BY open access license, any part of the article may be reused without permission as long as the original article is clearly cited. For more information, refer to https:///openaccess.
“the Psychology Of Borrowing: Emotional Impacts Of Student Loans”
The feature papers represent state-of-the-art research with significant high-impact potential in the field. A Feature Paper should be a substantial original article that involves several techniques or approaches, provides perspective for future research directions, and describes possible research applications.
How Psychological Market Indicators Help Timing
Feature articles are submitted by invitation or individual recommendation by scientific editors and should receive positive feedback from reviewers.
Editor’s Choice articles are based on recommendations from scientific editors of journals from around the world. Editors select a small number of articles recently published in the journal that they believe may be of particular interest to readers or important in their respective research area. The aim is to provide a snapshot of some of the most interesting work published in the journal’s various research areas.
By Mandukhai Ganbat Mandukhai Ganbat Scilit Preprints.org Google Scholar 1, † , Erdenebileg Batbaatar Erdenebileg Batbaatar Scilit Preprints.org Google Scholar 2, † , Ganzul Bazarragchaa Ganzul Bazarragchaa Scilit Preprints.org Google Scholar 1, † , Togtuunaa Ider Togtuunaa Ider Scilit Preprint s . org Google Scholar 1 , Enkhjargalan Gantumur Enkhjargalan Gantumur Scilit Preprints.org Google Scholar 1 , Lkhamsuren Dashkhorol Lkhamsuren Dashkhorol Scilit Preprints.org Google Scholar 1 , Khosgarig Altantsatsralt Khosgarig Altantsatsralt Scilit Preprints.org Google Scholar 1 , Mandakhbayar Nemekh Mandakhbayar Nemech Scilit Preprints.org prints.org Google Scholar 1 , Erdenebaatar Dashdondog Erdenebaatar Dashdondog Scilit Preprints.org Google Scholar 3, * and Oyun-Erdene Namsrai Oyun-Erdene Namsrai Scilit Preprints.org Google Scholar 2, *
R&D Department, Optimal N Max LLC, Bogd Javzandamba Street, Khan-Uul District, LS Plaza 801, Ulaanbaatar 17011, Mongolia
The Psychology Of Migration In: The Psychology Of Migration
Department of Information and Computing Sciences, School of Engineering and Applied Sciences, National University of Mongolia, Ikh surguuliin gudamj 3, Sukhbaatar District, P.O. Box-46A/600, Ulan Bator 14201, Mongolia
Department of Physics, School of Arts and Sciences, National University of Mongolia, Ikh surguuliin gudamj 1, Sukhbaatar District, P.O. Box-46A/600, Ulan Bator 14201, Mongolia
Received: February 4, 2021 / Reviewed: March 17, 2021 / Accepted: March 26, 2021 / Published: April 5, 2021
This paper determined the default factors of loan repayment behavior based on theories of psychological and behavioral economics. The purpose of this research is to identify whether an individual’s credit risk can be predicted based on psychometric tests that measure areas of psychological factors such as the effectiveness of economic decision-making, self-control, conscientiousness, altruism, and ‘generous attitude, neuroticism and attitude towards money. In addition, we compared psychological indicators with financial indicators and different age and gender groups to assess whether the former can predict loan default prospects. This research covered the psychometric test results, financial information, and loan default information of 1118 borrowers from cell phone loan origination applications. We validated the questionnaire using confirmatory factor analysis (CFA) and obtained an overall Cronbach’s alpha reliability coefficient greater than 0.90 (α = 0.937). We applied the empirical data to build prediction models using logistic regression. Logistic regression was employed to estimate the parameters of a logistic model. The result indicates that positive psychometric test results of effectiveness of financial decision-making, self-control, conscientiousness, altruism and generous attitude, and attitude towards money allow individuals access to debt . On the other hand, one of the variables, neuroticism, was found to be insignificant. Finally, the model used only psychological variables that have been shown to have significant default predictability, and the psychological variables and psychometric credit score offer the best prediction capabilities.
Pdf) A Study On The Emotions Of Various Debtholder Groups: A Behavioural Psychology Perspective
Behavioral economics; psychological factors; determinants; the psychology of personality; psychometric analysis; economic factors; credit risk; the responsible borrower; borrower; personality trait; loan repayment; debt
In practice, most financial institutions make their credit decisions based on the financial and demographic characteristics of their customers and do not take into account personal factors. According to the interactionist perspective in psychology, individuals’ behaviors are not only explained by situational and economic factors, but also by individuals’ needs and personality traits. Based on this approach, it can be seen that individuals’ personality traits can be a key indicator of an individual’s loan repayment behavior [1].
A psychometric methodology based on psychological factors can identify the loan repayment behavior of microlending service customers. Globally, FinTech companies and other loan providers are pioneering and developing the technology of psychometric credit scoring systems. These psychometric tests that recognize individuals’ financial behavior are implemented in over 50 countries around the world, capable of predicting individuals’ financial decisions with 91% accuracy [2]. The advantage of this development is characterized by greater accessibility to the loan service for those who are able to pay the loan but lack a previous credit score and with limited ability to obtain credit. This development crucially affects poverty reduction by providing lending opportunities to billions of people unable to obtain a loan due to poor financial condition and lack of credit history.
Commercial banks and non-bank financial organizations of Mongolia have traditionally determined an individual’s creditworthiness based on limited resources such as individual income and credit history [3]. On the other hand, as of Q1 2019, the total NPL volume reached MNT 89.1 billion or 9.1% of net lending [4], which proves the ineffectiveness of the traditional method of credit assessment, which is based on the individual’s material resources for the purpose of the loan and the inability to prevent the risks of non-performing loans. The majority of the working age population in Mongolia are unable to obtain loans from banks and non-bank financial institutions (NBFIs) as they are deemed uncreditworthy due to their low income and lack of history of loans, guarantees or social insurance payment. Among every 10 salaried adults in Mongolia, 1 has a high income level, 3 are in the middle income category or are able to prove their solvency for banking and financial services, and the remaining 6 people are in an income class low and are unable to provide documentary evidence for credit services [5]. We believe that using Psychological Credit Score increases the number of low-income but reliable clients.
Ways To Create An Emotionally Healthy Home
Research in this area has not yet been conducted in Mongolia. International studies show that economic and demographic indicators are widely used to predict loan repayments. Over the past decade, rather than just economic and demographic factors, psychological factors consisting of personality traits, attitudes, and behaviors have also been emphasized in debt-related studies as potential predictors of repayment behavior [1].
In 2006, the Entrepreneurial Finance Lab (EFL, Massachusetts Avenue, Cambridge, Massachusetts 01238 USA) of Harvard University investigated for the first time the possibility of employing psychological methods of borrower profiling in practice [6]. The EFL has developed a psychometric methodology of borrower personality assessment according to the three categories of personality traits, intellectual ability and correctness [7]. The methodology developed by the Harvard EFL focused on personality traits and fairness characteristics and leveraged them to develop an assessment methodology based on theories of individual psychology.
This study considers six psychological determinants, highlighted in the literature and theoretical research, as the factors influencing repayment behavior: effective financial decision-making, self-control, conscientiousness, altruism and generous (charitable) attitude, and neuroticism. These psychological factors will be explained in detail in the theoretical background section.
To choose the determinants, we relied on some of the following publications and theories. Previous research findings [1] revealed that ‘rational decision-making’ is a prominent feature of regular payers, while ‘irrational decision-making’ is revealed to be a feature of irregular payers. As defined by Daniel Kahneman and Amos Tversky, the founders of behavioral economics, rational decision making enables effective financial decision making [8]. Mahfuzur Rahman et al. (2020) found that self-control is important for avoiding debt [9]. Furthermore, conscientiousness is a protective factor in high-risk borrowing behaviors and is associated with lower levels of unsecured lending [10]. The phenomenon of “attitude towards money” was studied by Russian researchers, who in their research models included an analysis of individual psychological, personal, socio-psychological and social factors that determine the intensity of their attitude towards money. comparisons of money, according to different scales foreseen by the methodology. The relationship between social and monetary attitudes and an individual’s economic activity is thus shown [11]. In researching the socio-psychological peculiarities and level of financial literacy of Russian debtors, Nyhus and Webley (2001) found that emotional instability such as neuroticism is a positive predictor of debt [12].
The Psychology Of Debt: How It Affects Your Mental Health
This study aims to determine personality traits and psychological factors influencing debt repayment behavior and compare across financial indicators, and the study should contribute and help fill a gap in the literature. Furthermore, the results of this research should reveal a psychological evaluation related to the special rebate for Mongolian culture, which also makes this study valuable. To achieve this, we
Student loans in the us, interest of student loans, borrowing money to pay for expensive items like student loans, the future of student loans, great lakes borrowing services student loans, psychology of emotional attraction, psychology of emotional pain, the best private student loans, great lakes borrowing student loans, psychology of emotional eating, psychology of emotional intelligence, the cost of student loans