This study investigates the interplay between psychological factors, compulsive buying behavior, and financial literacy, and their collective impact on financial well-being, with a specific focus on the misuse of pay-later options. Utilizing a comprehensive data analysis approach, we examine how psychological determinants such as stress and impulsivity contribute to compulsive buying tendencies, which in turn affect overall financial health. Our methodology includes a detailed assessment of financial literacy as a moderating variable that can potentially mitigate the adverse effects of compulsive buying on financial well-being. The findings highlight the significant role of pay-later misuse in exacerbating financial distress among consumers. Results indicate that individuals with higher financial literacy are better equipped to manage their finances and avoid the pitfalls of impulsive buying and pay later misuse. This research fills a critical gap by linking psychological factors and financial behaviors with the practical implications of financial products like pay later services. The study concludes with recommendations for targeted interventions to enhance financial literacy and promote healthier financial behaviors, ultimately contributing to improved financial well-being.

Link: Impact of Psychological Factors and Financial Literacy on Pay Later Services Misuse