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Consumer Attitudes to Debt

CAD-DebtConsumer attitudes toward debt reflect the evaluative and affective orientations individuals hold toward borrowing money and incurring personal financial obligations. Lea, Webley & Walker (1995) conceptualise debt attitudes as multidimensional, distinguishing between: (1) attitude toward debt — a general positive or negative evaluation of personal debt as a financial instrument; (2) debt as normal — the degree to which debt is perceived as an ordinary, socially accepted, and non-stigmatising aspect of modern consumer life; and (3) debtor as inferior — the moral and social stigma associated with being in debt, reflecting older normative prescriptions against borrowing. These dimensions reflect both the functional evaluation of debt as a financial tool and the moral/social meanings attached to debt and debtors in contemporary consumer culture.
15 items 1995 α 0.71–0.83 Free Lea, S.E.G., Webley, P., & Walker, C.M.

What it measures

An economic psychology instrument measuring the evaluative and normative orientations that shape consumer debt behaviour. Lea, Webley & Walker (1995) situated consumer debt within a broader framework of money management and economic socialisation, demonstrating that attitudes toward debt are empirically distinct from actual indebtedness — consumers with positive debt attitudes and high normalisation of debt are more likely to carry revolving credit balances, use buy-now-pay-later services, and underestimate total debt obligations. ATD captures the functional-evaluative dimension (is debt a useful financial tool?); DN captures descriptive normalisation (is debt common and acceptable in society?); DI captures the moral-stigma dimension (is being in debt a sign of personal failure or social inferiority?). DI is negatively correlated with ATD and DN and is more prevalent in older cohorts and cultures with strong savings norms. ATD and DN predict credit card adoption, instalment purchase behaviour, and willingness to finance consumer durables; DI predicts avoidance of credit products and reluctance to disclose financial difficulties to advisors. The scale is widely used in consumer financial psychology, credit marketing, and financial wellbeing research.

Representative items

Citation

Lea, S.E.G., Webley, P., & Walker, C.M. (1995). Psychological factors in consumer debt: Money management, economic socialisation, and credit use. Journal of Economic Psychology, 16(4), 681–701.

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