Household Debt Case Study

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1.0 Background of study Household is a group of people lives together in a house and usually household stand for spouse, friends, relatives and other. According to Deboosere (2011), household is a person who lives alone or a group of people who living together with sharing expenditure including the essential of living. Household debt is when an adult of the household have owe with financial institution. Debt among household either a group of people lives together or individual will happened when they over ‘over borrow’ or financial institutions ‘over lend’ to them. These situations can rising household debt and also can affect financial system and economy. Hunt, C. (2015) explain that, financial system and economy will be affeted by a high…show more content…
Based on Chung.T, as cited by Bank Negara Malaysia (2012), household debt in Malaysia has increasing from recent year by increasing RM667.8 from year 2011 to RM754.6 billion in year 2012 and it also represent an average increase of 12.3% since year 2008. From there it shows that our household debt in Malaysia has increasing. This situation maybe happened effect from the factor such as gross domestic product (GDP), housing price and mortgage. Household debt not only rising in Malaysia, other country also affected with this problem. Joseph, S. (2013), said that rising of household debt not only in Malaysia but every year up to 2012, Canada is also facing household debt. From that statement, it shows that other country also affected with this problem and the problem also rising every year. So, household for both countries need to do something in order to decrease the amount of household debt by identifying the factor of rise the household…show more content…
1.2.2.2 Thus gross domestic product will influence to the rising household debt in Malaysia? 1.2.2.3 Thus mortgage will influence to the rising household debt in Malaysia? 1.2.2.4 Which independent variables are the most significant towards rising household debt in Malaysia? 1.3 Research Objectives Research objectives have been developed based on the research questions. This is because research question and research objectives must be same in order to get the end result of this study. The research objectives are divided into two categories which is main objective and specific objectives. 1.3.1 Main Objective To investigate the factors that affect on rising household debt in Malaysia by using secondary data. 1.3.2 Specific Objectives 1.3.2.1 To examine the factors of rising Household Debt 1.3.2.2 To examine the relationship between Housing Price and Household Debt 1.3.2.3 To examine the relationship between Gross Domestic Product (GDP) and Household Debt 1.3.2.4 To examine the relationship between Mortgage and Household Debt 1.4 Theoritical

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