Debt problems and life transitions: a register-based panel study of Finnish young people

This register-based panel study analyzed the impacts of key life events on debt problems among emerging adults using a within-individual design. In this study, 8093 Finnish young people (born 1988–1990) were monitored for 9 years (2005–2013). The data comprised information from administrative registers, including information about debt enforcement, which was used as an indicator of debt problems. Key life events included leaving home, obtaining the first full-time job, and becoming a parent. Debt problems were highly common. They increased after leaving home, especially among those leaving home at a young age. Obtaining the first full-time job was not regarded as a major event in the context of debt problems, although having a job was associated with a lower level of debt problems. Such problems increased after becoming a parent. The results imply that life-changing events can have an impact on economic problems.