Bridging Macroeconomics and Personal Finance Perspectives: A Conceptual Exploration of Debt Management and Financial Well-Being

The growing complexity of household financial management amid economic uncertainty highlights the urgent need for integrated theoretical models that link macroeconomic factors and personal financial behaviour. This review paper revisits the ABCD–XYZ Resource Management Model of Crisis or Stress and modernizes it for application in personal finance. By incorporating factors such as gross domestic product, debt-to-income, interest rate, financial literacy and personality, this paper proposes a conceptual framework explaining how these variables affect debt management behaviours and financial well-being. Clear conceptual propositions and a recommended empirical framework are outlined to guide future research. Practical implications for financial educators and policymakers are also discussed.