TITLE:
Household Debt and Financial Burden in Mexico
AUTHORS:
Reyna Elizabeth Rodríguez Pérez, David Castro Lugo, Luis Sebastian Meneses Cruz
KEYWORDS:
Debt, Financial Burden, Households, Mexico
JOURNAL NAME:
Modern Economy,
Vol.11 No.11,
November
27,
2020
ABSTRACT: The objective of this work is to determine the debt
index and identify the financial burden of households in Mexico for 2014 by using
the data from ENIGH 2014. The hypothesis to be tested is that during the last
few years, households in Mexico are accelerating their dependence on debt to
satisfy their consumption and housing needs, which is added to disproportionate
interest rates, considerably increases their financial burden, which in many
cases slows down or leads to the bankruptcy of the economy of these households.
The results indicate that households in the first three deciles are in
unsustainable conditions and do not have the financial capacity to meet their
expenses and debts, while households in the fourth, fifth and sixth deciles are
at financial risk.