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Credit Card Ownership And Debt Status In Malaysia

Author

Listed:
  • YIING JIA LOKE

    (School of Social Sciences, Universiti Sains Malaysia, 11800 Penang, Malaysia)

  • STEVEN T. YEN

    (Department of Agricultural and Resource Economics, The University of Tennessee, Knoxville, TN 37996-4518, USA)

  • ANDREW K. G. TAN

    (School of Social Sciences, Universiti Sains Malaysia, 11800 Penang, Malaysia)

Abstract

This paper examines the role of socio-demographic and credit consumption tendencies in affecting credit card ownership and debt status. Based on a sample of 938 individuals from three major cities in Malaysia, card holders' debt status is measured in relation to credit card expenditure, which in turn is categorized into convenience users, low-risk credit revolvers and high-risk credit revolvers. While socio-demographic factors play significant roles in determining card ownership, card holders' credit consumption tendencies, such as past debt history and type of loan possessed, have varying adverse effects on the card holder's debt status.

Suggested Citation

  • Yiing Jia Loke & Steven T. Yen & Andrew K. G. Tan, 2013. "Credit Card Ownership And Debt Status In Malaysia," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 58(03), pages 1-26.
    • Handle: RePEc:wsi:serxxx:v:58:y:2013:i:03:n:s0217590813500161
    DOI: 10.1142/S0217590813500161
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    References listed on IDEAS

    as
    1. Lusardi, Annamaria & Tufano, Peter, 2015. "Debt literacy, financial experiences, and overindebtedness," Journal of Pension Economics and Finance, Cambridge University Press, vol. 14(4), pages 332-368, October.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Yiing Jia Loke, 2017. "Financial Vulnerability of Working Adults in Malaysia," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 11(2), June.

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    More about this item

    Keywords

    Credit card debt; credit card ownership; credit revolver; convenience user; ordered probit model; sample selection; D12; D14; E51; G20;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • 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
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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