The last decade was a period of rapid growth of household debts in Poland. Households more
often use credit to defray current expenses and purchase of durable goods. The using of a
wider range of loans is also accompanied by gradually extension of average loan maturity.
These processes are reflected in the level of the burden of household budgets repayments of
loans. The volume of loan repayments is an important element of household budget not only
due to maintain solid liquidity, but also influence the level of consumer spending, which
determines the possibility of meeting needs in the long term.
The aim of this paper is to determine the burden of household budgets repayments of loans, as
well as knowledge of the socio-economic profile of indebted households. Using econometric
modelling, based on data from the household budget survey in Poland conducted by the
Central Statistical Office in the years 2005–2013, the authors identified the determinants of
the expenditure level related to repayment of loans incurred by households. The study
indicates that the amount of household expenditure on loans and credits repayments is impact
by income, age of household head and the size of the city, which is situated household.