scholarly journals The Relationship between Consumer Credit Card Debt and Immigrants in the UK: A Systematic Review

2020 ◽  
Vol 4 (2) ◽  
pp. 86-114
Author(s):  
Paul Thompson
Keyword(s):  
Consumer Behavior ◽  
Financial Literacy ◽  
Credit Card ◽  
Influential Factors ◽  
Unique Contribution ◽  
Credit Card Debt ◽  
Home Equity ◽  
Screening Process ◽  
The Uk ◽  
The Relationship

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.

The effect of household wealth on financial debt after cancer diagnosis.

2021 ◽  
Vol 39 (15_suppl) ◽  
pp. e18552-e18552
Author(s):  
Syed Hussaini ◽  
Mia Dana ◽  
Lauren Nicholas
Keyword(s):  
Heart Disease ◽  
Cancer Diagnosis ◽  
Chronic Conditions ◽  
Credit Card ◽  
Chronic Condition ◽  
Household Wealth ◽  
Credit Card Debt ◽  
Home Equity ◽  
Diagnosis Of Cancer ◽  
New Diagnosis

e18552 Background: Cancer is the 2nd most common cause of death in the country, eclipsed only by heart disease. Cancer care is increasingly characterized by financial toxicity related to high-cost treatments, though it is unknown whether other chronic conditions impose similar financial harms. Methods: We conducted a retrospective analysis of the Health and Retirement Study participants interviewed between 2012-2018. This is a national, longitudinal survey conducted every two years of adults 50 and older and their spouses. We used fixed effect regression models to compare changes in financial debt among households with new diagnosis of cancer, other major chronic conditions (diabetes, stroke, or heart disease), and no new health diagnosis (or health shock). Since more affluent households may respond to health shocks differently, we estimated separate comparisons for households above versus below median wealth in 2012, prior to new health conditions. We assessed use of any non-housing financial debt, credit card debt, and home equity lines of credit among the subset of homeowning households. Results: In this study of 14,153 households, average age at interview was 62 years, with 43% male, 70% White, 22% Black, 13% Hispanic, and 70% with up to high school education. Of this population, 25% held credit card debt, 70% owned a home, 18% had a home equity line of credit, and 9% used a home equity line of credit. Among households with below median wealth when they entered the study in 2012 ( < $23,000 in $2016), a new cancer diagnosis was associated with a 4.7 percentage point increase in financial debt (12.5% effect size, p < 0.05). Participants diagnosed with a chronic condition (heart condition, stroke or diabetes) were 3.6 percentage points more likely to develop financial debt (9.6%, p < 0.05) compared to households that did not develop a new chronic condition. Such differences were eliminated in participants in a house with above median wealth. There was no difference in credit card debt, availability of home equity line of credit, or use of home equity line of credit for participants with a new diagnosis. Conclusions: New diagnosis of cancer or a chronic condition were associated with increased financial debt for older Americans living in a household that were below median wealth.

scholarly journals The Assessment of Financial Literacy: New Evidence from Europe

2019 ◽  
Vol 7 (3) ◽  
pp. 54 ◽  
Author(s):  
Nicolini ◽  
Haupt
Keyword(s):  
Financial Literacy ◽  
Selection Process ◽  
Financial Education ◽  
Assessment Tools ◽  
Financial Behaviors ◽  
Financial Decisions ◽  
The Uk ◽  
New Evidence ◽  
The Relationship ◽  
Literacy Research

The hypothesis that people with more financial literacy make better financial decisions and show positive financial behaviors is crucial for more than one stakeholder. A weak connection between financial literacy and financial behaviors jeopardizes the opportunity to invest in financial education and to develop a consumer protection framework based on the chance to develop aware and responsible financial consumers. This study uses data from different countries (Germany, France, Italy, Sweden, the UK), using surveys devised and fielded specifically to measure financial literacy and in order to assess if the availability of a broad set of items on financial literacy allows to develop new measures of financial literacy to better understand the relationship between financial literacy and financial behaviors. The well-established Lusardi–Mitchell questions are compared with measures that differ in terms of number of items (the “50-items” index), range of topics (the “5-specific” index), or selection process of the items (the “unbiased” index). Results support the hypothesis that the Lusardi–Mitchell questions remain a good measure in a first-step analysis, but a deeper understanding of the connection between financial literacy and financial behaviors benefits from the measures proposed in the study, that should be considered as additional assessment tools in financial literacy research.

scholarly journals The Effects of Gender and Marital Status on Accrued Debt in Retirement Planning

2021 ◽  
Vol 5 (Supplement_1) ◽  
pp. 242-242
Author(s):  
Zibei Chen ◽  
Karen Zurlo
Keyword(s):  
Marital Status ◽  
Financial Planning ◽  
Credit Card ◽  
Retirement Planning ◽  
Credit Card Debt ◽  
Financial Capability ◽  
Mortgage Debt ◽  
Negatively Associated ◽  
The Relationship ◽  
Current Marital Status

Abstract The effects of gender and marital status on accrued debt in retirement planning becomes an urgent concern because unmarried women face greater financial challenges in retirement than their counterparts. This study used data from the National Financial Capability Study (NFCS), designed by FINRA. We identified debt that influences retirement planning among a sample of pre-retirees, aged 51 to 61 years, and consider the associations of gender, marital status, debt, and retirement planning. Our results indicated that mortgage debt and credit card debt were negatively associated with retirement planning for women. Having a retirement account is positively associated with retirement planning and it also mediates the relationship between credit card debt and retirement planning. We urge women and financial planning executives to take time during the pre-retirement years to assess their various forms of debt and determine how it affects retirement planning objectives given current marital status.

scholarly journals Demographics and consumer ethnocentrism in a developing context: A South African study

2014 ◽  
Vol 17 (4) ◽  
pp. 412-426 ◽  
Author(s):  
Chris D Pentz ◽  
Nic S Terblanche ◽  
Christo Boshoff
Keyword(s):  
South Africa ◽  
Consumer Behavior ◽  
Ethnic Diversity ◽  
Influencing Factor ◽  
Negative Relationship ◽  
Past Research ◽  
Unique Contribution ◽  
Consumer Ethnocentrism ◽  
Developing Markets ◽  
The Relationship

The continued growth in international trade results in the fact that consumers in many countries are exposed to increasing amounts of product offerings from various countries of origin. As the origin of products might have an influence on consumer behavior, many marketers realize that extended knowledge on consumer behavior toward both domestic and imported products can be useful in the formulation of more effective marketing strategies.  Past research in the field of international marketing suggest that the concept of consumer ethnocentrism can be an influencing factor in the decision of consumers to purchase locally-produced rather than imported products. While the concept of consumer ethnocentrism has been actively researched in a number of contexts and countries, research on this phenomenon has been limited in developing countries. The present study aims to add to the existing body of knowledge on consumer ethnocentrism in developing markets by investigating the possible relationships between consumer ethnocentrism and a number of demographic variables in South Africa. A unique contribution of this study is that the investigation focused on two different samples in terms of race, namely on a sample of “white” respondents and a sample of “black” respondents to account for the ethnic diversity in South Africa.  The results of the study revealed that for both groups of respondents there was a positive relationship between age and consumer ethnocentrism, while a negative relationship was found for both groups in terms of the relationship between consumer ethnocentrism and income.  In terms of the relationship between consumer ethnocentrism and gender, the results differed between the two groups of respondents.  The findings can be used rewardingly by marketers wishing to operate more successfully in developing markets, such as South Africa.

The Transactions Demand for Credit Cards

2007 ◽  
Vol 7 (1) ◽  
Author(s):  
Kathleen W. Johnson
Keyword(s):  
Credit Card ◽  
Consumer Credit ◽  
Credit Cards ◽  
Credit Card Debt ◽  
Financial Vulnerability ◽  
Short Term ◽  
Payment Instruments ◽  
The Cost ◽  
The Relationship

Abstract I argue that the measure of credit card debt used by researchers has grown rapidly in part because it captures debt arising from transactions in which a credit card is used because of its advantages over other payment instruments. Increases in debt stemming from such use may not signal greater household financial vulnerability if households are willing and able to repay this short-term debt. However, it may suggest that the cost of using credit cards to pay for purchases has declined relative to other payment instruments. I conclude that had transactions demand remained at its real 1992 levels, rather than growing almost 15 percent per year, measured credit card debt would have grown a bit less than 1 percentage point slower per year between 1992 and 2001. Moreover, I show that removing transactions demand from aggregate consumer credit can alter conclusions about the relationship between credit and consumption.

scholarly journals Consumer Credit Card Debt and Immigrants: A Cross-Sectional Study of U.K. Immigrants’ Financial Capability

2020 ◽  
Vol 4 (2) ◽  
pp. 18-45
Author(s):  
Paul Thompson
Keyword(s):  
Credit Card ◽  
Cross Sectional Study ◽  
The Body ◽  
Specific Information ◽  
Multiple Time ◽  
Unique Contribution ◽  
Credit Card Debt ◽  
Consumer Debt ◽  
Cross Sectional ◽  
Lending Institutions

Purpose: This study examines the ubiquitous nature and high level of consumer debt associated with certain demographics, with a specific focus on immigrants in the U.K. Methodology: A cross-sectional approach was deemed appropriate because the information used for analysis was based on specific points in time for the years 1995, 2000, and 2005. The sample method used was representative of all persons who were resident in Britain at multiple time points consistent to the waves of data collection. The sample used for this analysis was U.K. residents included in the BHPS during the years 1996, 2001, and 2006. Findings: The results showed that individuals with higher levels of education acquired more debt compared to lesser educated people, that credit card debt increased the total consumer debt owed, and that larger households incurred more consumer debt. Unique contribution to theory, practice and policy: The findings from this study may assist in positive social change by providing specific information to banks and lending institutions on how they can manage the credit This study might help in expanding the body of knowledge about the association of credit debt and immigrants in UK, which has received a growing interest among researchers in the field of finance, economics and ethnopolitics. Keywords: Credit debt, Immigrants, Consumer behavior, ethnicity, financial inequality

scholarly journals Consumer susceptibility to credit card misuse and indebtedness

2014 ◽  
Vol 26 (3) ◽  
pp. 408-429 ◽  
Author(s):  
Sandra Awanis ◽  
Charles Chi Cui
Keyword(s):  
Credit Card ◽  
Measurement Scale ◽  
Unique Contribution ◽  
Socially Responsible ◽  
Marketing Practice ◽  
Policy Makers ◽  
Content Type ◽  
Spending Behavior ◽  
The Uk ◽  
Payment Mechanisms

Purpose – Prior research suggests that payment mechanisms are imbued with cues that affect purchase evaluation and future spending behavior. Credit cards are distinguished from other payment mechanisms as they elicit greater willingness to spend, prompt weaker recollections of past credit expenses and overvaluation of available funds – a phenomena the authors call as “credit card effect.” Little is known about the individuals’ differential exposure to the credit card effect. The purpose of this paper is to present a new concept and measure of susceptibility to the credit card misuse and indebtedness (SCCMI). Design/methodology/approach – The study focussed on young credit card users (aged 18-25) from Malaysia, Singapore, and the UK as they represent varying levels of credit card issuance and consumer protection regulations. The authors conducted confirmatory factor analysis and invariance tests to assess the validity, reliability and parsimony of the proposed scale in the three countries. Further, the authors examined the prediction power of SCCMI on consumer tendency to become a revolving credit card debtor. Findings – Results show that the SCCMI scale is valid, reliable and parsimonious across the multi-country context. The paper provided additional validity support through known-group comparison among various payers of credit card bills. Research limitations/implications – The convenience sampling used for the study is the main limitation. The findings bear important implications for more socially responsible marketing practice and better public policies in credit carder regulation for protecting young credit card users. Practical implications – The new concept and measurement scale can be used for identifying the vulnerable individuals in credit card use, assisting consumer knowledge training, improving policies for credit card regulation, and helping credit card providers in socially responsible marketing practice. Social implications – The cross-country validity of the SCCMI scale provides a unique contribution for monitoring and auditing consumer vulnerability in credit card misuse in Asian and European market conditions. Originality/value – SCCMI offers an original concept that is distinct from previous research in that SCCMI focusses solely on the state of likelihood to commit credit card abuse rather than the behavioral manifestations of credit card misuse. SCCMI provides a new tool for marketers and public policy makers for ethically responsible credit card marketing and regulation to protect youths’ benefits.

Financial Literacy: The Influencing Factors Among Youth

2021 ◽  
Vol 1 (2) ◽  
pp. 1
Author(s):  
Hazlaili Binti Hashim ◽  
Andy Lim Yee Chee ◽  
Yeo Sook Fern ◽  
Anushia Chelvarayan ◽  
Khairol Nizat Bin Lajis
Keyword(s):  
Financial Literacy ◽  
Credit Card ◽  
Questionnaire Development ◽  
Financial Knowledge ◽  
Family Influence ◽  
Wide Range ◽  
Familial Influences ◽  
Convenience Sampling ◽  
Financial Behaviour ◽  
The Relationship

Malaysia, like all other countries throughout the world, became a victim of the COVID 19 epidemic. Based on the Malaysia's Insolvency Department 2021 statistical data, the alarming increase of individual bankruptcy cases were caused by failure to pay personal loans, instalment purchases, and credit card debt especially amongst youth. This is concerning because it implies that young Malaysians are still oblivious to their financial circumstances. Hence, the goal of this research is to investigate the level of financial literacy among youth, as well as the relationship between financial knowledge, financial behaviour, financial attitude, and familial influences on financial literacy. A non-probability convenience sampling method was used to gather information from 181 respondents. The findings of the study show that financial knowledge (p=0.000), financial behaviour (p=0.000), and family influence (p=0.000), are significantly associated to financial literacy, the dependent variable in this study, with the exception of financial attitude (p=0.418). Time constraints, insufficient independent variables covered, questionnaire development, respondents' honesty, and respondents' inequity were some of the challenges encountered while conducting this study. The most significant limitation is the sample size, which does not represent the population of Malaysian youth. The findings of this study have broad implications for a wide range of stakeholders, including university students, curriculum developer, parents of students, and future researchers. In this study, the factors that influence financial literacy among youth were examined, and it was concluded that the youth literacy level was moderate. The findings of the study will also help to support the National Strategy for Financial Literacy, which runs from 2019 to 2023.

scholarly journals Factors Contributing To Financial Literacy Level Among Youth

2021 ◽  
Vol 1 (1) ◽  
pp. 30-35
Author(s):  
Hazlaili Binti Hashim ◽  
Andy Lim Yee Chee ◽  
Yeo Sook Fern ◽  
Anushia Chelvarayan ◽  
Khairol Nizat Bin Lajis
Keyword(s):  
Financial Literacy ◽  
Credit Card ◽  
Sampling Method ◽  
Financial Knowledge ◽  
Family Influence ◽  
Familial Influences ◽  
Convenience Sampling ◽  
Financial Behaviour ◽  
The Relationship ◽  
Significant Factors

The number of bankruptcy cases registered from 2017 to April 2021, according to the Malaysian Insolvency Department, is 58,065. Bankruptcy cases involving people under the age of 34 accounted for 24.28 percent of all filings. The inability to pay personal loans, instalment purchases, and credit card debt led to the majority of bankruptcy cases. This is alarming because it suggests that young Malaysians are still unaware of their financial situation. As a result, the goal of this research is to investigate the level of financial literacy among youth, as well as the relationship between financial knowledge, financial behaviour, financial attitude, and familial influences on financial literacy. A non-probability convenience sampling method was used to gather information from 181 respondents. The findings of the study show that financial knowledge (p=0.000), financial behaviour (p=0.000), and family influence (p=0.000) are significantly associated with financial literacy, the dependent variable in this study, with the exception of financial attitude (p=0.418). The sample size is among the limitation of this study which it does not represent the population of youth in Malaysia. The conclusions of this study have significant consequences for a variety of stakeholders, including university students, universities, students' parents, government, and future researchers. The factors that influence financial literacy among youth were investigated in this study, and several significant factors were revealed. This will also add to the supports of the agenda in the National Strategy for Financial Literacy 2019 to 2023.

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