Home Loan Debt Management of Borrowers by Accounting to Increase Financial Efficiency

Abstract

The objectives of this research were to 1) study the management of home-loan debt by borrowers with accounting, and 2) examine the influence of managing home-loan debt using accounting on financial efficiency. This research was quantitative. The population consisted of 175,315 borrowers from the housing-transfer units in the Bangkok Metropolitan Region and its periphery, with a sample size of 400. The research tool used was a questionnaire, which was validated by three experts with an IOC (Index of Item-Objective Congruence) value of 0.96 and a reliability coefficient (α) of 0.76. Data collection was conducted both offline and online. The data were analyzed through descriptive statistics and the research hypothesis was tested using multiple regression analysis.
The research findings revealed that 1) in managing home-loan debt through accounting, borrowers prioritized their actions as follows: First, selecting a loan source by creating a list of loan sources from both public and private commercial banks to facilitate their decisionmaking. Second, for principal repayment, borrowers planned monthly additional payments (overpayments) when they had cash flow so as to reduce the principal thus alleviating debt faster. Third, in managing interest rates, if the loan could not be fully repaid after three years, borrowers would look for a refinance with another bank for lower interest rates. 2) The management of home-loan debt through accounting influenced financial efficiency thus supported the research hypothesis. Therefore, in applying these research findings, it is recommended that borrowers should select loan sources, create a comparative accounting of housing loans, and effectively manage the repayment of principal and interest.