Financial literacy and the use of credit cards in Mexico

Buy-now-pay-later (BNPL) arrangements have rapidly emerged as a short-term debt option, and like other innovative and disruptive Fintech, challenge existing regulation. BNPL arrangements avoided prescribed ‘responsible lending’ legislative obligations, which applied to similar short-term credit products. Instead, BNPL relies on ‘responsible spending’ in providing a potentially cheaper option than alternatives such as credit cards. We describe the interplay of regulation and responsibility with BNPL. A survey investigates whether a key demographic (young adults) have an appetite or skill for responsible use. We analyse the preference for BNPL relative to credit cards and the role of financial literacy and traits including propensity to plan and save. The findings suggest that financial literacy reduces perceived BNPL benefits and that lower financial literacy is associated with more benefits and less risks. JEL Classification: G53, D14, G51, G41, G18

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Consumers and Predators

Watchdog ◽

10.1093/oso/9780197502990.003.0001 ◽

2020 ◽

pp. 3-16

Author(s):

Richard Cordray

Keyword(s):

Financial Literacy ◽

American Dream ◽

Student Loans ◽

Credit Cards ◽

Financial Protection ◽

Credit Reporting ◽

Payday Loans ◽

Debt Collectors

Consumers rely on credit every day, using credit cards, student loans, mortgages, and the like to seek the American dream. But as the risks and complexities of credit grew and deceptive practices by predatory lenders spread, it became all too easy for responsible people to end up in bad situations. When consumers raise issues with financial companies, they are often stymied—ignored or dismissed—and few have the resources or expertise to fight back on their own. Lack of financial literacy increases the risks for many people. Using stories of problems that people face with credit cards, student loans, auto loans, payday loans, debt collectors, and credit reporting companies, this chapter sets the stage for why consumers need government—the Consumer Financial Protection Bureau—to stand with them and provide balance to the financial marketplace.

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Pengaruh literasi dan pengalaman keuangan terhadap penggunaan kartu kredit pekerja di Banyuwangi

Journal of Business and Banking ◽

10.14414/jbb.v6i2.730 ◽

2019 ◽

Vol 6 (2) ◽

Author(s):

Cintya Restu Destianata ◽

Lutfi Lutfi

Keyword(s):

Regression Analysis ◽

Multiple Regression Analysis ◽

Financial Literacy ◽

Credit Card ◽

Credit Cards ◽

Snowball Sampling ◽

Luxury Good ◽

The Rich ◽

Credit Card Usage ◽

The Impact

Nowadays, credit card is not any longer a luxury good because it is not only owned the rich. In addition, to use it wisely, the users should have adequate financial literacy and financial experience. This study aims to examine the impact of financial literacy and financial experience on credit card usage by the workers. The data were collected using a questionnaire. The respondents were taken from 110 workers in Banyuwangi who have got credit cards with them. They were selected based using snowball sampling. The data were analyzed by using Multiple Regression Analysis, this study finds that financial experience positively affects the credit card usage, but financial literacy has no effect on it.

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‘Get Some Secured Credit Cards Homey’: Hip Hop Discourse, Financial Literacy and the Design of Digital Media Learning Environments

E-Learning and Digital Media ◽

10.2304/elea.2009.6.1.4 ◽

2009 ◽

Vol 6 (1) ◽

pp. 4-22 ◽

Cited By ~ 1

Author(s):

Ben Devane

Keyword(s):

Digital Media ◽

Learning Environments ◽

Financial Literacy ◽

Hip Hop ◽

Credit Cards ◽

Media Learning

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The Assessment of Financial Literacy: The Case of Europe*

International Review of Financial Consumers ◽

10.36544/irfc.2019.1-2.1 ◽

2019 ◽

Vol 4 (No. 2 Oct 2019) ◽

pp. 1-12

Author(s):

Gianni Nicolini

Keyword(s):

Empirical Analysis ◽

Financial Literacy ◽

Adult Population ◽

Credit Cards ◽

European Countries ◽

Money Management ◽

Assessment Methodology ◽

Weak Point ◽

Definition Of ◽

Debit Cards

The study starts from the definition of financial literacy and its components, to identify the criteria that an assessment methodology should have to properly measure it. In the second part, an empirical analysis of the degree of financial literacy of adult population in several European countries (France, Germany, Italy, Sweden, UK) is used to highlight similarities and to stress differences between countries. Results show how the availability of 50 items allows to differentiate the levels of financial literacy in various areas of knowledge (e.g. loans, investments, money management). The use of money (e.g. credit cards, debit cards, cash) is the area of knowledge where individuals seem to be more well-informed and confident. Conversely, investment and investment products (e.g. stock, bonds) represent a weak point, with average scores being dramatically low.

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