| In recent years,with the continuous innovation of financial products,the development of Internet Finance and the increasingly fierce competition among financial institutions,the debt behavior of households in China is undergoing significant changes.Families face more choices in formal credit and informal credit.How to choose the right lending method and determine the optimal debt scale has become a problem for many families.Households increasingly need to rely on their financial literacy to make reasonable debt decisions,so as to avoid overburdening their debt burden because they can't judge the reasonableness of their debt situation.At the same time,as the scale of household debt in China continues to expand,the potential risks of the household sector should also receive more attention.Considering that the debt scale of Chinese family is very different,some families cannot obtain the required funds due to credit constraints,and some families are in a situation of high debt risk due to the accumulation of excessive debt.Therefore,it is particularly important and urgent to study the impact of financial literacy on household debt behavior by using household micro-survey data.Based on the data of China Household Finance Survey in 2015,this paper makes a comprehensive analysis of household debt behavior from the perspective of financial literacy.In order to understand the current situation of financial literacy of Chinese residents,this paper adopts the method of factor analysis to construct financial literacy indicators and finds that there are obvious differences in financial literacy levels among different households.In the empirical analysis part,this paper not only analyzes the impact of financial literacy on whether a family has debt,the scale of debt and the choice of debt channel,but also analyzes the impact of financial literacy on household debt repayment ability and the high debt risk.Ordered Probit model is used to analyze the impact of financial literacy on household debt repayment ability,and Probit model is used to analyze whetherfinancial literacy will affect the possibility of household being in high debt risk.The results of empirical analysis show that the improvement of financial literacy will increase the possibility of household owning debt.Households with high financial literacy can effectively find lower borrowing rates in the credit market,relieve household credit constraints,thus increasing the scale of debt held by households.In terms of household debt channel selection,financial literacy will significantly increase the likelihood of families getting formal credit and reduce the demand for informal credit,thus greatly increasing the proportion of formal credit in households.Households with higher financial literacy are more inclined to borrow money from formal channels.In terms of household debt risk,financial literacy has a significant positive impact on household debt repayment ability,and families with high financial literacy are more likely to have stronger debt repayment ability.The improvement of financial literacy will also prompt the family to choose a reasonable debt scale and the best debt channel on the basis of analyzing the debt repayment ability,so as to reduce the possibility that the family is at high risk of debt.Finally,according to the conclusions of this paper,some suggestions are put forward from the perspective of government,financial institutions and families.From the perspective of the government,it is necessary to improve the financial literacy level of the family.The government also needs to pay attention to the debt risk of households,improve the constraint mechanism of household debt growth from various aspects,and enhance the debt repayment ability of households.From the perspective of financial institutions,they should further strengthen the construction of personal credit reporting systems,encourage residents to maintain good credit records and increase the possibility of families getting formal credit on the premise of controllable risks.From the perspective of families,families should constantly enrich their knowledge and skills in economic and financial fields.When families participate in the credit market,they should actively seek the best way and channel of debt,borrow reasonably within their own debt repayment capacity,and reduce the possibility of households at high debt risk. |
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