Debt literacy, peer-to-peer lending, and over-indebtedness

Abstract

This paper discusses the relationship of debt literacy, peer-to peer lending, and over- indebtedness in Indonesia. Data collection is done online in collaboration with commercial market research firms, Jajak Pendapat. By using descriptive methods, it is clear that the majority of respondents, both borrowers and non-peer to peer lending borrowers are debt illiteracy, and those who have lousy debt literacy have much debt. Debt from peer to peer lending also has the potential to create problems, namely over-indebtedness. The novelty of this research is to discuss peer-to-peer lending lending from the perspective of debt literacy and over-indebtedness. This paper is essential because the number of loans on this platform continues to increase, both legal and illegal.