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One interesting finding relates to gender, which was strongly associated with unpaid debt attributable to the credit products under investigation. Women were at a higher risk of incurring problem debts related to instant loans, distance selling, and extensive consumer credit relative to credit-card debt. One reason for this result could be the average lower income of women, which affects their position in the credit market (Callegari et al., 2020) and increases their risk to default on these credit products. This claim needs further research, however.
This article focused on debt judgements originating from four different credit products. Even if our data gives a good picture of problem debts among Finnish consumers, we should point out that the overall situation remains unclear. In general, the market position of consumers varies, which affects their access to credit. Credit-constrained consumers may need to take on more expensive unsecured loans from a finance company instead of the bank, where they are known but are considered risky clients. A low level of financial literacy may lead to the taking on of high-cost credit and further to insolvency. Regulation should protect young consumers in the current loan market, in particular, even if there are also some negative consequences. For example, many providers of instant loans disappeared from the Finnish credit market after 2013, but there is still a demand for them. We therefore highlight the need to develop more sustainable loan products to meet the requirements of high-risk, low-income consumers. In terms of social responsibility, small and low-interest credit products should be more easily available to applicants with a realistic repayment plan, for example. 59ce067264