The Credit Card Debt Puzzle: The Role of Preferences, Credit Access Risk, and Financial Literacy

Purpose: This paper systematically reviews a reappraisal of the relationship between consumer behavior and credit card debt. Methodology: A thorough search was performed using scholarly databases including EBSCOHost, Google Scholar, Wiley Online Library, JStor, ProQuest, and Taylor & Francis. After a vigorously screening process, a total of 77 articles were accepted with the majority (96%) of articles published after 2012. Several consumer behavior factors were considered such as social factors, psychological factors, impulse buying, compulsive buying, optimism and pessimism, risk-seeking, mental health, age, income, education, immigrants, religion and financial literacy. Findings: Overall, influential factors that contribute to credit debt can be attributed to redlining and predatory lending by financial institutions. Racial inequalities have been shown to play a significant role in credit debt, especially in the UK. Unique contribution to theory, practice and policy: A major knowledge gap concerning immigrants exists and further provide insight on the role played by an individual’s ethnic group in the rate of home equity decline as well as the overall net wealth of a household, ultimately affecting their credit debt. It would be useful for policy-makers to examine the biased placed on credit debt and social-economic backgrounds.

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THE ROLE OF SECURED AND UNSECURED DEBT IN RETIREMENT PLANNING AMONG PRE-RETIREES

Innovation in Aging ◽

10.1093/geroni/igz038.1404 ◽

2019 ◽

Vol 3 (Supplement_1) ◽

pp. S382-S383

Author(s):

Zibei Chen ◽

Karen Zurlo

Keyword(s):

Credit Card ◽

Well Being ◽

Retirement Planning ◽

National Sample ◽

Mediating Effect ◽

Credit Card Debt ◽

Mortgage Debt ◽

Unsecured Debt ◽

The Relationship

Abstract The retirement landscape is transformed by the shifting of risk and responsibility to individuals, who are increasingly responsible for their retirement security. Many factors lead to indebted and overleveraged American households. Specifically, nearly 40% of Americans approaching retirement are heavily indebted. Understanding the role of secured and unsecured debt in retirement planning becomes an urgent concern because debt is highly related to well-being in retirement among a growing number of older Americans. We focus on pre-retirees because these individuals have time to earn an income and plan ahead before they commit to a fully retired lifestyle. Utilizing data from the 2015 National Financial Capability Study, we identified the secured and unsecured debt that influences retirement planning among a national sample of pre-retirees, aged 51 to 61 years. Regression and mediation analyses were used to examine the relationship between debt and retirement planning and to identify the mediating effect of having a retirement account on the relationship between unsecured and secured debt and retirement planning. Our results indicated that mortgage debt and credit card debt were negatively associated with retirement planning. Having a retirement account is positively associated with retirement planning and it also mediates the relationship between credit card debt, specifically, and retirement planning. In conclusion, we urge individuals and financial planning executives to take time during the pre-retirement years to assess various forms of debt and determine how it is affecting their retirement planning objectives. And policy-makers should address the challenges faced by indebted pre-retirees.

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Invest in Financial Literacy

Mathematics Teaching in the Middle School ◽

10.5951/mathteacmiddscho.17.6.0358 ◽

2012 ◽

Vol 17 (6) ◽

pp. 358-365 ◽

Cited By ~ 1

Author(s):

Sarah B. Bush ◽

Maggie B. McGatha ◽

Jennifer M. Bay-Williams

Keyword(s):

Real World ◽

Financial Literacy ◽

Credit Card ◽

Credit Card Debt ◽

College Costs

Budgeting credit card debt and calculating college costs provide real-world mathematical contexts.

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Role of Commercial Banks in Financial Literacy

PRODUCTIVITY ◽

10.32381/prod.2018.59.02.9 ◽

2018 ◽

Vol 59 (2) ◽

pp. 186-197

Author(s):

M. SELVAKUMAR ◽

◽

P. ANBUCHEZHIENKAMARAJ ◽

V. Sathyalakshmi ◽

R. Mohammed Abubakkar Siddique ◽

...

Keyword(s):

Financial Literacy ◽

Commercial Banks

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Formation of financial literacy in training of informatics teachers on the basis of the 1С:Enterprise system

Informatics and Education ◽

10.32517/0234-0453-2020-35-1-11-18 ◽

2020 ◽

Vol 1 (1) ◽

pp. 11-18

Author(s):

M. A. Rodionov ◽

I. V. Akimova

Keyword(s):

Financial Literacy ◽

Basic Knowledge ◽

State University ◽

Science And Literature ◽

Successful Development ◽

Mathematics History ◽

School Subjects ◽

Personal Finances ◽

The Right

In the submitted study the problem of the formation of financial literacy of students at informatics lessons and relevant training of future informatics teachers is considered. Financial literacy is understood as a set of basic knowledge in the field of finance, banking, insurance, as well as budgeting for personal finances that allow a person to choose the right financial product or service, soberly assess and take risks that may arise during the use of these products, correctly accumulate savings and identify doubtful (fraudulent) investment schemes. The authors conclude that successful development of meaningful lines of the course of financial literacy requires integration of a few school subjects, such as mathematics, history, informatics, social science and literature. The role of modern informatics teacher in the formation of financial literacy of students is great. Therefore, in the training of a future informatics teacher, it should be paid the attention to issues related to the study of elements of financial literacy in informatics lessons. In order to solve the problem, the authors propose to use the special course “Basics of work in 1С:Enterprise”, which is implemented at Penza State University. The article contains a program of the course and the methodological recommendations for its implementation.

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