Credit card debts of the poor: High and rising
In this article we report on a little-known aspect of the consumer credit explosion: It has also happened among the poor. Focusing on credit cards, we use data from four releases of the Survey of Consumer Finances (SCF), 1983-1995, to trace the evolution of the debt position of the poor as compared to that of the population at large. The data indicate that from 1983 to 1995 the fraction of poor households with a credit card more than doubled, and the average balances held on these cards rose almost as rapidly as the balances of nonpoor households. In 1983, fewer than 1 in 30 poor households had credit card debts greater than twice their monthly incomes; by 1995, more than 1 in 8 did. There is no strong evidence at the moment that the added debt has increased the financial distress of these households. Nonetheless, because of the debt increase, poor households at the end of the 1990s are more vulnerable to an economic downturn than they were at the end of the 1980s.© 1998 by the Association for Public Policy Analysis and Management
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 18 (1999)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/34787/home|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brito, Dagobert L & Hartley, Peter R, 1995. "Consumer Rationality and Credit Cards," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 400-433, April.
- Domowitz, Ian & Sartain, Robert L, 1999.
"Incentives and Bankruptcy Chapter Choice: Evidence from the Reform Act of 1978,"
The Journal of Legal Studies,
University of Chicago Press, vol. 28(2), pages 461-87, June.
- Ian Domowitz & Robert L. Sartain, . "Incentives and Bankruptcy Chapter Choice: Evidence from the Reform Act of 1978," IPR working papers 98-7, Institute for Policy Resarch at Northwestern University.
When requesting a correction, please mention this item's handle: RePEc:wly:jpamgt:v:18:y:1999:i:1:p:125-133. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.