Page 270 - Contributed Paper Session (CPS) - Volume 6

CPS1925 Marek K.
partially – result from the specific situation of Poland, discussed at the
beginning of this section. Relatively low income and the need to build the
wealth without significant support of the generation of parents, causing
concentration on the current situation, create at the same time the belief that
there is no real opportunity to collect savings of significant value that would
actually increase income during retirement. This result contradicts the
predictions of Life Cycle Hypothesis, in which saving for retirement is the basic
motive for saving, but complies – especially taking into account the age of
respondents – with Carroll's buffer-stock model of savings (Carroll 1997).
The second of the characterized areas of behavior relates to borrowing.
Due to the close relationship of saving and borrowing, the analysis of this area
will be carried out according to the same scheme that was applied to saving
processes. The results of exploratory factor analysis (carried out using the
principal component method), which enable the identification of related
behaviors, are presented in Table 3.
Table 3. Borrowing – factor’s loading for the first three factors
Factor’s loadings
Questions
Factor 1 Factor 2 Factor 3
Do you currently have loans or credits to pay off? 0.930 0.164 0.033
Do you currently have the mortgage to pay off? 0.826 0.000 0.006
How did you manage to cover expenses – did you 0.067 0.019 0.828
get loans or credits?
How did you manage to cover expenses – did you -0.011 0.023 0.835
not pay part of bills, loan installments?
Please, assess to what extent the repayment of 0.944 0.147 0.047
debts is burdensome for your household.
Do you have credit cards? 0.118 0.912 0.006
How often in the last 6 months you have used the 0.101 0.915 0.042
entire credit limit on at least one credit card?
Eigenvalue 2.729 1.479 1.364
Factor 1 characterizes a “conventional” borrowing – in the form of loans
or credits, including mortgage loans. A very interesting aspect is that only this
component is related to the nuisance of repayment of liabilities, although this
nuisance would be expected primarily in relation to Factor 3, or Factor 2.
However, the results show that in the case of Factor 3 the problem is the
overall level of income. And credit cards are perceived as a way of delaying
payments (and transferring expenses between periods – Factor 2) and they are
not directly related to inconveniences being a consequence of indebtedness.
Factor 2 concerns borrowing with credit cards. Credit cards are, on the
one hand, a payment instrument, but they also serve as a source of credit. Due
to the conservative credit policy of Polish banks, credit cards have not become
so popular instrument in Poland as in many other countries, such as the United
States. Holders of these cards are a group of people with a relatively more

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