The Impact of Unsecured Lending on the Financial Wellbeing of Consumers.

Abstract

Improving access and building inclusive financial systems is not just a goal but also a necessity for economies at every level of development. Unsecured lending was first introduced with the intention of addressing society's ills yet recent violence experienced at the Marikana mines in Rustenburg aroused the attention of both the general public and government. The impact of unsecured lending on the financial wellbeing of consumers has subsequently been brought under the spotlight. Unsecured lending has taken and will continue to take an increasingly central role in our social, political and economic landscape. This study intended to determine the impact of unsecured lending on the financial wellbeing of consumers and made use of three research hypotheses towards this aim. A survey was used to gather data which was statistically analysed by means of a quantitative research strategy. The findings of the research indicated that those who make use of unsecured lending as a means of accessing finance have a better subjective view of their financial wellbeing than those who do not make use of unsecured lending, further, consumers who make use of multiple unsecured loans have an improved outlook with regard to their financial position than those who do not make use of multiple unsecured loans.