Lown, J. M. & Ju, I.-S. (1992). A model of
credit use and financial satisfaction. Financial Counseling and
A Model of Credit Use and Financial
Jean M. Lown1 and In-Sook Ju2
This study tested a preliminary model of credit use and financial
satisfaction based on the Deacon and Firebaugh (1988) systems approach
to management. The dependent variable in the model was financial
the independent variables were categorized into three groups:
characteristics, credit attitudes, and credit practices. Respondent
about their credit obligations was the most powerful predictor of
satisfaction; high levels of concern were related to lower levels of
The subjective assessment of credit obligations was more important in
financial satisfaction than the objective measurement of family debt
such as debt repayment-to-income ratio. Fifty-two percent of the
in the model of financial satisfaction was accounted for by
characteristics, credit attitudes, and credit practices.
Key Words: Credit, Financial satisfaction, Financial ratios
2. In-Sook Ju, Korean Pharmaceuticals Manufacturing Association.
Dr. Ju was an Instructor in Home Economics Education, Korea University.