Abstract
The article presents a review of the literature and the results of an empirical study of strategies for repayment of multiple debts in a laboratory experiment and their connection with the personality traits of the respondents (N = 348). The main strategies of debt repayment are identified - Rational, Semi-rational, Aversive, Distributive, Chaotic and Ignoring of small numbers. The smallest group in the empirical study is the group of respondents with Rational strategy. Respondents of all the groups, except Rational, were compared among themselves on personal characteristics. Respondents with the Semi-rational strategy, in contrast to respondents with other strategies, demonstrate a greater propensity for risk. An Aversive strategy is characterised by a tendency to reduce the number of debts and is demonstrated by respondents when performing various tasks. Respondents with a Chaotic strategy made multiple mistakes in the simulation and, in comparison with all other respondents, are less open to new experience. Respondents with a strategy for paying off debts Ignoring small numbers turned out to be more benevolent than Chaotic respondents and respondents with the Close to rational strategy.
Highlights
A credit strategy suggests a high level of predict- rationality and intuition, which is sometimes irability and consistency of consumption
It is supposed that the strategy —are inconsistent, decisions are defined aversive strategy is not just a mistake; it has a rationally: making a decision at each stage of their systematic character
With multiple debts are motivated to reduce a Dynamic decisions as a consecutive game between total of a number of debts instead of reducing a various options are limited to Markov balance total amount of the related expenses
Summary
A credit strategy suggests a high level of predict- rationality and intuition, which is sometimes irability and consistency of consumption. Theoretical and experimental literature in psychology studies a problem of the dynamic choice and defines various internal obligations and the strategy of self-control. It is useful to be based on behavioural modelling for decision-making forecasting of observed behaviour, but it can result in difficulties for welfare measurement and the analysis of social policy. The impulsiveness is recognized as a strong predictor of unsecured debts, compared with mortgages and car loans The rationale for this that secured debt influences decisions that last a long time and are related to the life-cycle theory, according to which the consumer enters into debts on rational grounds in order to maximize utility and, is not associated with impulsive behaviour that favours short-term benefits.
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