Financial stressors and alternative financial service use: Extending the ABC-X model of family stress

Thie study's purpose was to examine factors associated with alternative financial service (AFS) use among US consumers. The conceptual framework for this study was developed from the ABC-X model of family stress with the purpose of identifying the interrelationships among financial stressors, economic hardship, negative credit experiences, and the use of AFS. Using the U.S. National Financial Well-Being Survey and the structural equation modeling method, the results showed that financial stressor was not directly related to AFS use but were through two indirect routes: the financial stressor was positively linked to negative credit experience and then to AFS use; the financial stressor was positively linked to economic hardship, to negative credit experience, and then to AFS use. Economic hardship was positively associated with consumers' negative credit experiences. Negative credit experience was positively associated with the use of alternative financial services. The findings provide theoretical and practical implications.