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Demographics, attitude, personality and credit card features correlate with credit card debt: A view from China

  • Wang, Lili
  • Lu, Wei
  • Malhotra, Naresh K.
Registered author(s):

    With the help of a commercial bank in China, we studied consumer credit card debt behavior2 in correlation with demographics, attitude, personality, and credit card features factors. The study was conducted by using mail-in questionnaires, which were sent to credit card holders who was using or had used either revolving credit or petty installment plans. According to regression functions, we found that demographic variables and credit card features had limited explanatory power compared to attitude variables and personality variables. Specifically, we found that revolving credit use and petty installment use were closely related to attitudes about credit cards, money and debt. Risk attitude efficiently predicted petty installment use; however, it did not correlate with revolving credit use. Personality factors of self-control, self-esteem, self-efficacy, deferring gratification, internal locus of control and impulsiveness were significantly correlated with revolving credit use; on the other hand, sensation seeking, impulsiveness, and deferring gratification were correlated with petty installment use. We also found that some credit card features easily led to an "illusion of income" that facilitated consumer credit card debt behavior.

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    File URL: http://www.sciencedirect.com/science/article/B6V8H-51JPWKJ-2/2/6a04ca43bab05096de0804daaff83590
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    Article provided by Elsevier in its journal Journal of Economic Psychology.

    Volume (Year): 32 (2011)
    Issue (Month): 1 (February)
    Pages: 179-193

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    Handle: RePEc:eee:joepsy:v:32:y:2011:i:1:p:179-193
    Contact details of provider: Web page: http://www.elsevier.com/locate/joep

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    1. Sumit Agarwal & Chunlin Liu, 2003. "Determinants of credit card delinquency and bankruptcy: Macroeconomic factors," Journal of Economics and Finance, Springer, vol. 27(1), pages 75-84, March.
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    5. Stone, Brice & Maury, Rosalinda Vasquez, 2006. "Indicators of personal financial debt using a multi-disciplinary behavioral model," Journal of Economic Psychology, Elsevier, vol. 27(4), pages 543-556, August.
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    16. DeVaney, Sharon A. & Lytton, Ruth H., 1995. "Household insolvency: A review of household debt repayment, delinquency, and bankruptcy," Financial Services Review, Elsevier, vol. 4(2), pages 137-156.
    17. O'Guinn, Thomas C & Faber, Ronald J, 1989. " Compulsive Buying: A Phenomenological Exploration," Journal of Consumer Research, University of Chicago Press, vol. 16(2), pages 147-57, September.
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