Abstract:
This study examines how taking personal loans affects the economic and
psychological well-being of officers in the Sri Lanka Air Force (SLAF). It also
examines whether financial literacy and spousal employment change this
relationship. Data were collected through a structured survey from 317 SLAF
officers. The findings show that personal loans are positively related to both economic
and psychological well-being. Importantly, officers whose spouses are employed
reported higher well-being, showing that spousal employment helps reduce the
negative effects of debt. However, financial literacy did not significantly influence
the relationship between loans and well-being. This suggests that having another
income in the household is more helpful than simply having financial knowledge. The
study recommends that military financial programs consider family income when
assessing financial risks and provide better support for officers through targeted
counselling. These findings are useful for improving well-being in military settings
where debt is common.
