Abstract: Basing on the micro-data of the Chinese Household Financial Survey (CHFS), we investigated debt decision-making and debt level of the Chinese rural households. The study found that the production management and the housing of a family were two important factors to debt decision and debt level, the financial assets significantly decreased the possibility and level of debt. There are financial needs of rural residents in various income groups, and the income does not significantly affect the decision-making and degree of debt. Interest rates and price expectations, which were both factors that involved cost and benefit directly, impacted the debt decision-making of residents.

Key words: rural residents, household debt, debt level, assets