Payment problems through a social class lens

Borrowing is an integral part of most households’ economy and is a commonplace to raise one's consumption potential. But it also brings the risk of payment problems. Borrowing, and any subsequent payment problems, has a social class dimension, as social class relates to consumption patterns, wealth and earnings. We apply a Bourdieuan class analysis to investigate differences in the onset of payment problems among the adult Norwegian population, and we investigate whether the social classes have different risk factors for payment problems. We use longitudinal register data and the results show that payment problems are more common among those in the lower classes and in the economic middle classes. Moreover, the economic middle classes are more exposed to payment problems in case of life events that incur income loss. Better knowledge about whom is at risk for payment problems, and under what circumstances, can improve welfare policies.