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A (W)hole in the Financial Budget: Budgeting’s Influence on the Effective Use of Credit Card Debt in Australia

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Listed:
  • Ajzerle Sanja

    (Griffith University, Brisbane, Queensland, Tel: +61 7 3735 7111, Australia)

  • Brimble Mark

    (Griffith Business School, Griffith University, Brisbane, Queensland, Tel: + 61 7 3382 1355, Australia)

  • Freudenberg Brett

    (Griffith University, Brisbane, Queensland, Tel: + 61 7 3382 1196, Australia)

Abstract

Credit card debt has become intrinsic to the way of life and are accepted as part of modern day living. This paper examines to what extent personal budgeting can influence the effective use of Australian credit card debt. The findings suggest that the most effective credit card debtors are those who consider they do not need a budget due to low income and expenses followed by those without a budget but often earning in excess of $180,000 p.a. Participants with the lowest effective use of credit card debt are those who do have a budget but rarely follow it.

Suggested Citation

  • Ajzerle Sanja & Brimble Mark & Freudenberg Brett, 2015. "A (W)hole in the Financial Budget: Budgeting’s Influence on the Effective Use of Credit Card Debt in Australia," Financial Planning Research Journal, Sciendo, vol. 1(1), pages 55-72.
    • Handle: RePEc:vrs:finprj:v:1:y:2015:i:1:p:55-72:n:1004
    DOI: 10.2478/fprj-2015-0004
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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