The Effect of Financial Literacy on Risky Credit Behavior with Financial Stress as a Mediating Variable Among Gen Z Users of Paylater Services in Padang

Anaqoh Reihana, Dina Patrisia

Abstract


This study aims to analyze the influence of Objective Financial Literacy (OFL) and Subjective Financial Literacy (SFL) on risky credit behavior, with financial stress as a mediating variable, among Generation Z users of Paylater services in Padang. The study employs a quantitative approach using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method via SmartPLS software, involving 243 respondents selected through purposive sampling. The study found that OFL has a significant positive effect on risky credit behavior and a negative effect on financial stress. Financial stress has a significant positive effect on risky credit behavior and was found to significantly mediate the relationship between OFL and risky credit behavior. Meanwhile, SFL was found to have no significant effect on risky credit behavior but does have a significant positive effect on financial stress; thus, the relationship between SFL and risky credit behavior is fully mediated by financial stress. Financial stress was also identified as the strongest predictor of risky credit behavior within this framework. These findings indicate the existence of a knowledge–behavior gap and the phenomenon of overconfidence. Practically, the research results underscore the need for practical financial education to calibrate users’ self-confidence, as well as the provision of transparent debt management features in Paylater services.

Keywords


Financial Literacy, Financial Stress, Risky Credit Behavior

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DOI: https://doi.org/10.17509/ijdb.v5i4.102687

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