Credit Card Usage and Consumer Debt Burden of Households PDF Download
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Author: C. A. Wasberg
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: C. A. Wasberg
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: B. W. Ambrose
Publisher: Springer
ISBN: 0230608914
Category : Business & Economics
Languages : en
Pages : 293
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Book Description
In response to growing interest in household finance, this collection of essays with a foreword by John Y. Campbell, studies household and consumer use of credit instruments. It shows how individual consumers and households utilize various credit alternatives in managing their consumption and savings and suggests areas for future research.
Author: Edward Castronova
Publisher:
ISBN:
Category : Credit cards
Languages : en
Pages : 38
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Author: Tufan Ekici
Publisher:
ISBN:
Category : Consumer confidence
Languages : en
Pages : 111
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Abstract: It has been argued that there are irrational elements in the credit card market since consumers borrow on cards at very high interest rates. Previous empirical investigations have used the nominal interest rate as a determinant of borrowing. In this part of my dissertation I analyze whether the expected real interest rate has an effect on borrowing behavior. I use a new set of monthly survey data (Ohio Economic Survey or OES) that has information on both price and income expectations and credit card use. Censored regression estimation results show that when price expectations are taken into account, consumers adjust their credit card borrowing to the expected real interest rate. Credit card borrowing is also found to be significantly related to two key income components of consumer confidence. Thus the behavior of credit card users is shown to be more complex than what has been argued in previous research, and based on these findings could not be characterized as irrational. The second part of my work investigates the effect of credit card debt on households' consumption. The existing literature offers evidence for the effect of some aggregate debt measures on aggregate consumption growth. I first show that a new index specifically designed to capture credit card indebtedness is able to explain up to 14 percent of aggregate durable consumption growth. The index again utilizes the OES data and incorporates some variables that have generally been unavailable to researchers. I then combine two micro data sets, the Consumer Expenditure Survey and the OES, to test for the extent to which individual households' spending decisions can be accounted for by credit card debt. I use two-sample-two-stage least squares (2S2SLS) method to estimate reduced form Euler equations and include lagged household debt as an explanatory variable. The results show that credit card debt negatively affects consumption growth. A one percent increase in credit card debt leads to a $1,000 decrease in household's total spending. Even though in aggregate data we see that spending increases as debt increases, looking at the individual household level data tells a different story. These results indicate the need to evaluate the long-run effects of credit card debt more carefully.
Author: Donald L. Lerman
Publisher:
ISBN:
Category : Agricultural credit
Languages : en
Pages : 44
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Author: Dr Harrison Sachs
Publisher:
ISBN:
Category :
Languages : en
Pages : 142
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Book Description
This essay sheds light on how credit card debt has destroyed the middle class and also elucidates why you should never utilize a debt card. Moreover, the advantages of using credit cards if you are wealthy and how offering a $50 minimum wage would beneficially change the world are delineated in this essay. Moreover, the profound results of gravity payments paying employees a livable wage are identified, why corporations will never pay a livable wage to employees is demystified, and why employees are extinct and why humans have become horses in the age of automation is explicated in this essay. Furthermore, why employee jobs are so egregiously dreadful and lead to wage slavery and extreme poverty and how to generate extreme wealth online on social media platforms by creating a plethora of lucrative income generating assets is meticulously expounded upon in this essay. Additionally, the utmost best income generating assets to produce for generating extreme wealth online are identified, how to become a highly successful influencer online on social media platforms in the digital era is elaborated upon, the myriad of benefits of becoming a successful influencer online and attaining extreme fame leverage are demystified, and how to earn substantial money online so that you can afford to pay off credit card debt is meticulously explained in this essay, Much to the dismay of customers, credit card debt has calamitously destroyed the middle class. Former middle class customers are now maimed by the insurmountable debt burden of credit card debt that has rendered them all the more impoverished, destitute, and indigent as they eminently struggle to even make the minimum payments on their credit cards in an economy in which the cost prohibitive cost of living perpetually increases while the standard of living inversely decreases. The crux of the issue with credit card debt is that the interest fees accrue into the principal of the debt each and every day which further undermines the customer's purchasing power and severely comprises their ability to generate wealth. Additionally, the interest rates on credit cards can range from 15%-28% which effectively renders every purchase almost 30% more expensive for customers that cannot afford to pay off their credit card balances in full each month. Credit cards allow customers to pay a premium price to procure expensive item that they cannot afford to buy. This causes customers to experience an unsustainable temporary increase in their standard of living that is financed by insurmountable credit card debt. This culminates in outright decimating a customer's purchasing power in the long haul when they have exhausted all their lines of credit and have the onerous burden of paying back their insurmountable credit card debt with lofty interest payments. Credit card debt has destroyed the middle class and left them bereft of their purchasing power since they cannot afford to discharge their debts nor pay exorbitant interest payments on their insurmountable debts. Former middle class customers never had the wealth nor lasting purchasing power to sustain financing their envisioned lifestyles since their measly incomes cannot offset their exorbitant lifestyle expenses. "American consumers have a collective outstanding household debt of over $13.15 trillion of which is over $1 trillion is the credit card debt alone, households are truly on a debt binge. These figures should be a wake-up call to all the Americans. The convulsive household debt has surpassed the bubble of 2008 and is still escalating" (Deluce, 2018). Much to the customer's chagrin, the economy is not favorable to the former middle class customers who are submerged in insurmountable debt and left with dead-end, minimum wage, dispiriting, agonizing, debilitating jobs that do not even pay 1/4 of a sustenance wage for affording housing. In other words, credit cards have outright destroyed the little purchasing power of the middle class.
Author: Robert D. Manning
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 424
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Book Description
Credit Card Nation is the first comprehensive look at an ongoing social and economic crisis-America's escalting dependence on credit. By locating consumer debt within the context of corporate and governmental debt.
Author: Lewis Mandell
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 132
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Book Description
Of Data Compiled From Three Nationwide Studies Conducted in 1970 and 1971 by the Survey Research Center At the Institute for Social Research, University of Michigan.
Author: Meta Brown
Publisher:
ISBN: 9781437962253
Category :
Languages : en
Pages : 50
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Book Description
Household surveys are the source of some of the most widely studied data on consumer balance sheets, with the Survey of Consumer Finances (SCF) generally cited as the leading source of wealth data for the U.S. At the same time, recent research questions survey respondents' propensity and ability to report debt characteristics accurately. This report compares household debt as reported by borrowers to the SCF with household debt as reported by lenders to Equifax using the new FRBNY Consumer Credit Panel (CCP). Moments of the borrower and lender debt distributions are compared by year, age of household head, household size, and region of the country, in total and across five standard debt categories. The debt reports are strikingly similar, with one noteworthy exception: the aggregate credit card debt implied by SCF borrowers' reports is less than 50% of the aggregate credit card debt implied by CCP lenders' reports. Adjustments for sample representativeness and for small business and convenience uses of credit cards raise SCF credit card debt to somewhere between 52 and 66 percent of the CCP figure. Despite the credit card debt mismatch, bankruptcy history is reported comparably in the borrower and lender sources, indicating that not all stigmatized consumer behaviors are underreported. Tables and figures. This is a print on demand report.
Author: Giuseppe Bertola
Publisher: MIT Press (MA)
ISBN:
Category : Business & Economics
Languages : en
Pages : 400
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Book Description
Cross-national analysis of empirical, theoretical, and policy issues in the consumer credit industry, including household debt, credit card usage, and bankruptcy.
