Godwin, 1996

Godwin, D. (1996). Newlywed couples’ debt portfolios: Are all debts created equally? Financial Counseling and Planning, 7, 57-69.

Newlywed Couples’ Debt Portfolios:
Are All Debts Created Equally?

Deborah D. Godwin,(1) The University of Georgia

This study investigates the composition of newlywed couples’ debt portfolios as it affects their
debt difficulty, measured via three different financial ratios–a solvency ratio, a liquidity ratio,
and a debt repayment ratio. While about 90% of all couples had some debt, the newlywed
couples, all at the same family life cycle stage, had quite variable debt portfolios. Having charge
account balances due, automobile loans outstanding, and other debt (including medical and
educational debt and debts owed to family and friends) most consistently discriminated
newlywed couples at risk for debt difficulty from other couples.

KEY WORDS: debt, financial ratios, debt portfolio

1. Deborah D. Godwin, Associate Professor, Department of Housing and Consumer Economics, Dawson Hall, The University of Georgia, Athens, GA
30602-3622. Phone: (706)542-4870. Fax:(706)542-4397, E-mail: dgodwin@fcs.uga.edu

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