EXPRESS: Minimum Payments Alter Debt Repayment Strategies across Multiple Cards

2021 ◽  
pp. 002224292110472
Author(s):  
Samuel D. Hirshman ◽  
Abigail B. Sussman
Keyword(s):  
Credit Card ◽  
Well Being ◽  
Minimum Amount ◽  
Credit Card Debt ◽  
Dispersion Effect ◽  
Policy Makers ◽  
Information Displays ◽  
Multiple Accounts ◽  
Allocation Strategies ◽  
The Way

US Households currently hold $770 billion in credit card debt, often managing repayments across multiple accounts. We investigate how minimum payments (i.e., the requirement to allocate at least some money to each account with a balance) alter consumers’ allocation strategies across multiple accounts. Across four experiments, we find that minimum payment requirements cause consumers to increase dispersion (i.e., spread their repayments more evenly) across accounts. We term this change in strategy the dispersion effect of minimum payments and provide evidence that it can be costly for consumers. We find that the effect is partially driven by the tendency for consumers to interpret minimum payment requirements as recommendations to pay more than the minimum amount. While the presence of the minimum payment requirement is unlikely to change, we propose that marketers and policymakers can influence the effects of minimum payments on dispersion by altering the way that information is displayed to consumers. Specifically, we investigate five distinct information displays and find that choice of display can either exaggerate or minimize dispersion and corresponding costs. We discuss implications for consumers, policy makers, and firms, with a particular focus on ways to improve consumer financial well-being.

Debt Burdens Among BSW Graduates: A National Cross-Sectional Study

2010 ◽  
Vol 15 (2) ◽  
pp. 61-79
Author(s):  
Intae Yoon
Keyword(s):  
Credit Card ◽  
Credit Cards ◽  
Education Institution ◽  
Well Being ◽  
Cross Sectional Study ◽  
Credit Card Debt ◽  
Cross Sectional ◽  
Educational Debt ◽  
Ordinal Regression Model ◽  
Federal Loans

Cross-sectional data reveal a dire financial picture for 2009 BSW graduates that can be attributed in part to loan decisions (n=300). More than 10.1% have accrued a minimum of $55,000 in educational debt at graduation. Following private educational loans, credit cards are the second most reported private loans to finance respondents' BSW education (27.1%). Among those who used credit cards to fund their BSW education, 42% indicate that the availability of credit cards was "very" or "extremely" important to cover their educational expenses, and 11.1% have more than $10,000 in credit card debt. An ordinal regression model identifies predictors of high educational loan borrowers: the number of federal loans, perceived non-educational debt burden, importance of educational loan availability to attend a higher education institution, use of private educational loans, annual tuition, and total credit card debt. Individual, discipline-specific, and public interventions are presented to promote the financial well-being of these individuals.

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

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.

Differences in the Way to Conceive Happiness Relate to Different Reactions to Negative Events

2018 ◽  
Vol 39 (1) ◽  
pp. 27-38 ◽  
Author(s):  
Giulia Fuochi ◽  
Chiara A. Veneziani ◽  
Alberto Voci
Keyword(s):  
Positive Emotions ◽  
Satisfaction With Life ◽  
Well Being ◽  
Protective Role ◽  
Stressful Events ◽  
Interactive Effects ◽  
Negative Events ◽  
Orientations To Happiness ◽  
Specific Reactions ◽  
The Way

Abstract. This paper aimed to assess whether differences in the way to conceive happiness, measured by the Orientations to Happiness measure, were associated with specific reactions to negative events. We hypothesized that among orientations to pleasure (portraying hedonism), to meaning (representing a eudaimonic approach to life), and to engagement (derived from the experience of flow), orientation to meaning would have displayed a stronger protective role against recent negative and potentially stressful events. After providing a validation of the Italian version of the Orientations to Happiness measure (Study 1), we performed regression analyses of the three orientations on positive and negative emotions linked to a self-relevant negative event (Study 2), and moderation analyses assessing the interactive effects of orientations to happiness and stressful events on well-being indicators (Study 3). Our findings supported the hypotheses. In Study 2, meaning was associated with positive emotions characterized by a lower activation (contentment and interest) compared to the positive emotions associated with pleasure (amusement, eagerness, and happiness). In Study 3, only meaning buffered the effect of recent potentially stressful events on satisfaction with life and positive affect. Results suggest that orientation to meaning might help individuals to better react to negative events.

Strategic threats to energy security as risks of quality of people's life

2020 ◽  
Vol 16 (4) ◽  
pp. 730-744
Author(s):  
V.I. Loktionov
Keyword(s):  
Quality Of Life ◽  
Energy Security ◽  
Well Being ◽  
Scientific Methods ◽  
Analysis And Synthesis ◽  
General Scientific ◽  
And Performance ◽  
Economic Well Being ◽  
The Way

Subject. The article reviews the way strategic threats to energy security influence the quality of people's life. Objectives. The study unfolds the theory of analyzing strategic threats to energy security by covering the matter of quality of people's life. Methods. To analyze the way strategic threats to energy security spread across cross-sectoral commodity and production chains and influences quality of people's living, I applied the factor analysis and general scientific methods of analysis and synthesis. Results. I suggest interpreting strategic threats to energy security as risks of people's quality of life due to a reduction in the volume of energy supply. I identified mechanisms reflecting how the fuel and energy complex and its development influence the quality of people's life. The article sets out the method to assess such quality-of-life risks arising from strategic threats to energy security. Conclusions and Relevance. In the current geopolitical situation, strategic threats to energy security cause long-standing adverse consequences for the quality of people's life. If strategic threats to energy security are further construed as risk of quality of people's life, this will facilitate the preparation and performance of a more effective governmental policy on energy, which will subsequently raise the economic well-being of people.

Penguatan Wilayah Perbatasan: Studi Kasus Pulau Sebatik Kabupaten Nunukan Provinsi Kalimantan Timur

2015 ◽  
Vol 12 (2) ◽  
pp. 110
Author(s):  
Baskoro Wicaksono
Keyword(s):  
Central Government ◽  
Secondary Data ◽  
Well Being ◽  
Research Strategy ◽  
Management Policy ◽  
Infrastructure Development ◽  
Policy Makers ◽  
The Public ◽  
East Kalimantan ◽  
Border Policy

This study describes the border management policy conducted by the central government, provinceof East Kalimantan and Nunukan. Policies such as the establishment of regulatory, institutionalstrengthening, programs and infrastructure development. The policy is getting good responsefrom the elite and the masses. On the other hand policy makers have expectations of localcommunities border synergism Sebatik Island in order to build and develop the border areas so asto break the chain of dependence on Malaysia. The research was conducted in Sebatik Island,East Kalimantan province Nunukan with the formulation of the problem (a) what policies areoriented to maintain borders, (b) How is the public response to government policy, (c) What areyour expectations of policy makers in local communities to regional border. This study usedqualitative methods to phenomenological research strategy. Techniques of data collection in thisstudy using two ways, namely in-depth interviews and secondary data view Results indicate thatthe existing policy of both the central and provincial to district borders do not solve the problembecause it is made on the island of Sebatik with other border regions. The policy does not includelocal knowledge, where it is desperately needed by the people Sebatik. In addition to policies onprograms and infrastructure development of the center, the district adopted a policy of inactionagainst the illegal cross-border trade, which on the one hand against the rules but if enforced thenpeople can not perform economic activities that impact well-being. Policies like this gets a positiveresponse from the public. Expectations for the future border policy is to load local content orlocal knowledge.Keyword: border policy, local knowledge, dependent relationship

Development and validation of financial well-being related scales

2019 ◽  
Vol 37 (4) ◽  
pp. 1025-1040 ◽  
Author(s):  
Farah Diba M.A. Abrantes-Braga ◽  
Tania Veludo-de-Oliveira
Keyword(s):  
Interest Rates ◽  
Credit Card ◽  
Discriminant Validity ◽  
Well Being ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Convergent And Discriminant Validity ◽  
Group Interviews ◽  
Development And Validation ◽  
Additional Income

PurposeThe purpose of this paper is to develop valid and reliable scales for assessing a driver and two obstacles potentially related to financial well-being (FWB): financial preparedness for emergency, beliefs of credit limits as additional income and risky indebtedness behaviour.Design/methodology/approachThe scales were developed from scratch across six studies, employing a two-step methodology, which encompassed both qualitative (e.g. focus group, interviews) and quantitative (i.e. online surveys) data collection. Exploratory and confirmatory factor analyses were employed to test and validate the proposed scales.FindingsThis study provides a set of three parsimonious, self-reported behavioural measures that could be employed in conjunction with objective economic indicators to identify individuals who are financially ill prepared and potential candidates for delinquency. The three proposed scales achieved satisfactory levels of reliability and convergent and discriminant validity.Research limitations/implicationsThe resulting scales still need to be tested for predictive validity and in different consumer groups. The scales were validated in a single culture population (Brazil, a country that presents extraordinarily high credit card interest rates), and they should be tested cross-culturally in countries with different economic and credit policies.Originality/valueThe literature on FWB has traditionally employed objective financial indicators as an attempt to measure the concept of FWB and its elements. Self-reported behavioural measures of such constructs are scant to the point of being non-existent for some elements. This study is the first to offer scales for measuring the elements of financial preparedness for emergency, beliefs of credit limits as additional income and risky indebtedness behaviour.

scholarly journals The Impact of the COVID-19 Pandemic on the Working Conditions, Employment, Career Development and Well-Being of Refugee Researchers

Societies ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 71
Author(s):  
Ourania Tzoraki ◽  
Svetlana Dimitrova ◽  
Marin Barzakov ◽  
Saad Yaseen ◽  
Vasilis Gavalas ◽  
...  
Keyword(s):  
Online Survey ◽  
Negative Impact ◽  
Well Being ◽  
Appropriate Technology ◽  
Public Authorities ◽  
Policy Makers ◽  
Home Setting ◽  
The Public ◽  
Work From Home ◽  
The Impact

The ongoing ‘refugee crisis’ of the past years has led to the migration of refugee researchers (RRs) to European countries. Due to the COVID-19 pandemic, RRs often had to work from home and/or to continue their social, cultural and economic integration process under new conditions. An online survey carried out to explore the impact of the pandemic on the refugee researchers showed that RRs found it difficult to adapt their everyday working life to the ‘home’ setting. The majority have had neither a suitable work environment at home nor the appropriate technology. Although they stated that they are rather pleased with the measures taken by the public authorities, they expressed concern about their vulnerability due to their precarious contracts and the bureaucratic asylum procedures, as the pandemic has had a negative impact on these major issues. The majority of RRs working in academia seem not to have been affected at all as far as their income is concerned, while the majority of those employed in other sectors became unemployed during the pandemic (58%). Recommendations are provided to the public authorities and policy makers to assist RRs to mitigate the consequences of the pandemic on their life.

scholarly journals Buffer Stock Operations and Well-Being: The Case of Smallholder Farmers in Ghana

2021 ◽  
Author(s):  
Emmanuel Abokyi ◽  
Dirk Strijker ◽  
Kofi Fred Asiedu ◽  
Michiel N. Daams
Keyword(s):  
Stock Price ◽  
Smallholder Farmers ◽  
Well Being ◽  
Buffer Stock ◽  
Least Square ◽  
Subjective Well Being ◽  
Stabilization Policy ◽  
Environmental Aspects ◽  
Policy Makers ◽  
Aid Policy

AbstractThis study investigates the possible causal relationship between buffer stock operations in Ghanaian agriculture and the well-being of smallholder farmers in a developing world setting. We analyze the differences in the objective and subjective well-being of smallholder farmers who do or do not participate in a buffer stock price stabilization policy initiative, using self-reported assessments of 507 farmers. We adopt a two-stage least square instrumental variable estimation to account for possible endogeneity. Our results provide evidence that participation in buffer stock operations improves the objective and subjective well-being of smallholder farmers by 20% and 15%, respectively. Also, with estimated coefficient of 1.033, we find a significant and robust relationship between objective well-being and subjective well-being among smallholder farmers. This relationship implies that improving objective well-being enhances the subjective well-being of the farmers. We also find that the activities of intermediaries decrease both the objective and subjective well-being of farmers. This study demonstrates that economic, social, and environmental aspects of agricultural life could constitute priorities for public policy in improving well-being, given their strong correlation with the well-being of farmers. Based on the results of this study, we provide a better understanding, which may aid policy-makers, that public buffer stockholding operations policy is a viable tool for improving the well-being of smallholder farmers in a developing country.

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