Financial Literacy and Credit Choice of Consumer Credit Users in Sri Lanka

No Thumbnail Available

Date

2015

Journal Title

Journal ISSN

Volume Title

Publisher

Faculty of Commerce and Management Studies, University of Kelaniya

Abstract

Financial literacy of individuals matters in credit decisions specially when choosing among different credit alternatives. This study investigates the financial literacy level of consumer credit users in Sri Lanka and their credit choice. For this purpose primary data was collected from 445 individuals using a survey instrument. Individuals have displayed a moderate level of financial literacy and it is found that there is no significant difference between the financial literacy levels of males and females. Despite the financial literacy level, most individuals have resorted to high cost credit cards compared to low cost bank borrowings. This may imply a behavior that deviate from the rationality. It demands further research to determine the possible factors affecting the deviation from rationality. Further this research finds that individuals below the age of 25 have lower financial literacy level. It may imply that they are susceptible to higher credit related risks.

Description

Keywords

Consumer Credit, Financial Literacy, Credit Choice, Rationality

Citation

Lasantha, S.A.R. and Pathirawasam, C. 2015. Financial Literacy and Credit Choice of Consumer Credit Users in Sri Lanka. 6th International Conference on Business & Information ICBI – 2015, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka. pp 104-110.

Collections

Endorsement

Review

Supplemented By

Referenced By