The Living Standard and Structure of the Budget of Over-indebted Households Measured by their Repayment Pattern

Abstract

This paper analyzes the standards of living and the structure of measured by the pattern of their debt repayment (regular, irregular or no-repayment). This investigation makes use of a budget expenditure survey covering 144 households Considering budgets including debt repayment, households reimbursing regularly are characterized by their high standard of living. The standard of living in households repaying their debt on an iregular basis is by well under the poverty line. Additional debts are also arising from unpaid housing or fuel invoices. Regular debt payers too may experience an unbalanced budget. The living standard of indebted households tento to become lower than the poverty loine for those who are conscious about repayment. The setting of limits about reimbursment levels in relation to household size and composition is essential for the relief and rehabilitation of these indebted families.