The Psychology behind fast loans - Is there a pattern to who succumbs to the temptation of fast loans?

Abstract

Since the first fast loan company entered the market in 2006, there has been an increasing amount of individuals who have become indebted and ended up at Kronofogden because they haven't been able to pay off their loans. Reports have been made by Kronofogden, but only with age as a variable, to shed light on who amongst us take on fast loans. This thesis will investigate whether it is possible to predict who ends up over indebted by fast loans, and what personal characteristics predict getting into debt and struggling with personal finances. To investigate possible predictions we conducted a survey with questions about willpower, time preferences and reasons why someone has or has not taken fast loans. By examining the answers from the survey and running various regressions, we are able to answer some of our questions. Analyzing our regressions enables us to make suggestions of who is more likely to end up taking a fast loan. We also give advice for further research.