STUDY OF THE BORROWING HABITS OF INDIVIDUALS IN THE CITY AND DISTRICT OF KLAIPĖDA

Abstract

The main reason why individuals borrow more and more often. The purpose of the study is to investigate the borrowing habits of individuals in the city and district of Klaipėda. In order to find out the borrowing habits of individuals in the city and district of Klaipėda, two questionnaire surveys were conducted: in 2020 and 2021. Analyzed in 2021 survey and compared with 2020 survey results. The methods of vertical and horizontal analysis were chosen for the analysis. Research was conducted in 2020. March. 09 - in 2020 in April 01 and 2021 February. on the 20th - in 2021 March. 21. 277 respondents from the city and district of Klaipėda took part in the surveys, respectively (statistical error - 6%). Pearson's Chi-square (χ²) criterion with 95% was chosen for the distribution of the frequency of responses between discrete (nominal) attributes to assess statistical significance. probability, the difference is statistically significant at p<0.05Decisions made by individuals lead to the formation of certain habits. By making measured borrowing decisions that guarantee financial security, it is possible to develop borrowing habits that help avoid misunderstandings and risks in managing personal finances, and increasing financial literacy makes it possible to avoid irresponsible borrowing. After carrying out a study of the borrowing habits of individuals in the city and district of Klaipėda, it was found that the majority of surveyed households were in good financial condition. Most of the respondents planned their income and expenses. Households in the city and district of Klaipėda mostly borrowed for real estate (acquisition of housing), consumption, purchase of a vehicle, education and housing repairs. Borrowing from banks and leasing companies dominated. The most common reason for using credit was unwillingness to wait for savings. It was established that the number of households that planned to borrow more in the future decreased during the analyzed period. The study revealed that the financial condition of individuals in the city and district of Klaipėda depended on their borrowing habits. The following statistically significant correlations between households in Klaipėda city and district were established: households with lower incomes have statistically significantly more often real estate credit, and households with higher incomes have leasing obligations; the higher the income the household earns and the more members there are in the household, the longer the financial obligations they have; households with two working persons have a statistically significantly higher income between 501 and 1500 euros; households whose members lost their jobs due to the quarantine experienced a statistically significant decrease in income more often; statistically significantly more often those households whose financial condition improved during the quarantine assessed their household's financial situation as excellent, while those households whose financial condition worsened assessed their financial situation as average or satisfactory; Statistically significantly more often, during the COVID-19 pandemic, those households whose financial condition worsened during the quarantine delayed their loan payments. Most of the time, housing is purchased not with personal but with borrowed funds, so when planning to repay the loan, borrowers must ensure that their income is sufficient to fulfill their financial obligations. In addition, it should not be forgotten that the creditor carefully evaluates the solvency of customers, so it is necessary to borrow responsibly. The study revealed that in 2021 real estate was purchased by those households of Klaipėda city and district whose income was lower compared to 2020. with the obtained results, and the leasing service in 2021. used by more households that earned higher incomes. The most common purpose of the leasing service is to fulfill smaller household needs, so it can be assumed that in 2021 survey participants tended to save more or borrow less, possibly fearing the future as the COVID-19 pandemic drags on.