Behavioural Characteristics and Financial Distress

Table 9: Probit Results of Financial Distress (Dependent Variable: ‘Run Out of Money’
or ‘Arrears’)

	(1)	(2)	(3)	(4)
Dependent	Run Out of	Run Out of	Arrears	Arrears
Variable	Money	Money
	Marginal Std.	Marginal Std.	Marginal Std.	Marginal Std.
	Impact Error	Impact Error	Impact Error	Impact Error
Male	0.00 0.01	0.00 0.01	0.01 0.01	0.03*** 0.01
Age	0.01** 0.00	0.01*** 0.00	0.01*** 0.00	0.01*** 0.00
Age sq.¹	-0.01*** 0.00	-0.02*** 0.00	-0.01*** 0.00	-0.01*** 0.00
Married²	-0.04*** 0.02	-0.02 0.02	-0.02** 0.01	-0.03** 0.01
W/D/S ²	0.04* 0.02	0.04* 0.02	0.08*** 0.02	0.07*** 0.02
1 Child ²	0.03 0.02	0.03 0.02	0.02 0.01	0.03* 0.02
2 Children ²	0.02 0.02	0.01 0.02	0.01 0.01	0.00 0.01
3+ Children ²	0.08*** 0.03	0.06* 0.03	0.06*** 0.02	0.05*** 0.02
UK	0.05*** 0.01		0.03*** 0.01
Employed ²	-0.13*** 0.02	-0.11*** 0.03	-0.07*** 0.02	-0.07*** 0.02
Retired ²	-0.15*** 0.03	-0.13*** 0.03	-0.05*** 0.02	-0.06** 0.02
Inactive ²	-0.07*** 0.02	-0.04 0.03	-0.03* 0.01	-0.02 0.02
College	-0.07*** 0.01	-0.04*** 0.02	-0.04*** 0.01	-0.03** 0.01
Log Income	-0.06*** 0.01	-0.05*** 0.01	-0.01** 0.01	-0.01 0.01
Debt	0.06*** 0.01	0.07*** 0.01	0.02** 0.01	-0.02*** 0.01
Impulsive	0.12*** 0.02	0.13*** 0.02	0.05*** 0.01	0.06*** 0.01
Organised	-0.09*** 0.01	-0.09*** 0.01	-0.03*** 0.01	-0.03*** 0.01
Live Today	0.12*** 0.01	0.13*** 0.01	0.06*** 0.01	0.06*** 0.01
Literate: 4²		-0.01 0.02		-0.01 0.02
Literate: 5²		-0.09*** 0.02		-0.04*** 0.01
Literate: 6²		-0.10*** 0.02		-0.06*** 0.01
N	6,509	5,043	6,514	5,043
LR chi2	1383.30	1147.32	687.55	567.98
Prob chi2	0.0000	0.0000	0.0000	0.0000
Pseudo R2	0.1744	0.1838	0.1253	0.1304

Notes: ¹ Marginal Impact for Age sq. is scaled up by 100; ² Omitted categories for dummy variables are:
‘Single’, ‘No Children’, ‘Unemployed’ and ‘3 or less financial literacy questions answered correctly’.

*** Significant at 1% level; ** Significant at 5% level; * Significant at 10% level.

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Behavioural Characteristics and Financial Distress

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