Credit Cards

Transactional Convenience or Debt-Trap?

Research output: Contribution to journalArticleResearchpeer-review

Abstract

We survey individuals on their credit card usage. Contrary to popular press, most credit card holders use credit cards in a responsible manner. They tend to use credit cards for transaction convenience and pay little interest. Only a minor subset of people uses credit cards to access expensive credit, with only 7% of credit card holders in our sample never paying the balance in full. Credit card debt is more common among older, less financially literate, and less trusting respondents. Even individuals with credit card debt are well aware about its costs and are likely to make informed financial choices.

Original languageEnglish
Number of pages28
JournalInternational Review of Finance
DOIs
Publication statusAccepted/In press - 1 Jan 2018

Cite this

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title = "Credit Cards: Transactional Convenience or Debt-Trap?",
abstract = "We survey individuals on their credit card usage. Contrary to popular press, most credit card holders use credit cards in a responsible manner. They tend to use credit cards for transaction convenience and pay little interest. Only a minor subset of people uses credit cards to access expensive credit, with only 7{\%} of credit card holders in our sample never paying the balance in full. Credit card debt is more common among older, less financially literate, and less trusting respondents. Even individuals with credit card debt are well aware about its costs and are likely to make informed financial choices.",
author = "Stephen Brown and Chris Veld and Yulia Veld-Merkoulova",
year = "2018",
month = "1",
day = "1",
doi = "10.1111/irfi.12228",
language = "English",
journal = "International Review of Finance",
issn = "1369-412X",
publisher = "Wiley-Blackwell",

}

Credit Cards : Transactional Convenience or Debt-Trap? / Brown, Stephen; Veld, Chris; Veld-Merkoulova, Yulia.

In: International Review of Finance, 01.01.2018.

Research output: Contribution to journalArticleResearchpeer-review

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