Title: Examining the relationship between debt and well-being among rural households in India

Authors: S. Muhammed Nowfal; S. Sreejith

Addresses: School of Management Studies, Cochin University of Science and Technology, India ' School of Legal Studies, Cochin University of Science and Technology, India

Abstract: Consumers owe more today than ever, and the household debt to GDP ratio in India is increasing at a higher pace than in any other emerging economy. The present study investigates the effects of debt on life satisfaction and general health among rural households in India. The study further examined the role of financial worry in the association between debt and well-being. The data were collected from 360 lower- and middle-income households, and the constructed hypotheses were tested using structural equation modelling in AMOS. The findings suggested significantly negative direct relationships among subjective debt, life satisfaction and general health. Besides, financial worry mediated the relationships between subjective debt, life satisfaction and general health. The study offers solid theoretical and practical implications.

Keywords: financial worry; debt; subjective well-being; rural households; life satisfaction.

DOI: 10.1504/IJICBM.2025.148926

International Journal of Indian Culture and Business Management, 2025 Vol.36 No.2, pp.206 - 221

Received: 28 Apr 2023
Accepted: 27 Sep 2023
Published online: 03 Oct 2025 *

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