Effects of Low Income Families' Ability and Willingness to Use consumer Credit on Subsequent Outstanding Credit Balances

This study investigates consumer credit use of 618 low income families selected from the 1983 and 1986 Survey of Consumer Finances. The low income family's ability and willingness to use credit along with selected interaction variables are tested in a hierarchical multiple regression model. Significant determinants of the amount of credit outstanding in 1986 were household head's employment status and age, credit balance in 1983, and two interaction variables: specific attitude toward credit with head's educational level and with debt balance in 1983. Implications of the use of consumer credit by low income families are discussed.     

Household Use of Open-End Credit to Finance Risk

The use of open-end consumer credit to finance risk is becoming increasingly popular, but has long been overlooked in the literature on household risk management. This paper derives explicit conditions under which credit financing is superior to insurance policies, product service plans, and self-insurance as a means of financing risk. Implications for consumers, manufacturers, insurers, creditors, and public policymakers are discussed.     

Contributing to the Delinquency of Borrowers

What contributes most to borrower delinquency—“excessive”borrowing that results in greater financial stress or unforeseen negative income and wealth shocks? Using data from the 1998 Survey of Consumer Finances, this paper provides evidence that consumer delinquency problems are mainly the result of unexpected negative events that neither the lender nor the borrower could have anticipated at the time the credit request was evaluated. The size of the household payments burden has an insignificant effect on delinquency risk and very little effect on default risk. Finally, household financial assets that can be used as a buffer against negative shocks also serve as a very important predictor of delinquency risk.     

Idiosyncratic use of credit facilities by consumers in an emerging economy

A worldwide increase in household debt since the turn of the century has created considerable concern about the indebtedness of households, especially those in emerging economies that have been hit particularly hard by the global economic slump. In this study, the credit consumption of consumers in Swaziland (N = 264) was investigated by means of a survey that aimed to identify and describe factors that encouraged consumers' use of credit, the influence of credit on their buying behaviour when choosing major household appliances or furniture as well as consumers' knowledge of the conditions of credit facilities that were available for their use in retail. Findings revealed that consumers unequivocally appreciate the convenience that is associated with credit, specifically to cope with unexpected purchases, to benefit from special offers and opportunity to afford expensive goods. These advantages apparently negate the negative consequences such as high interest rates and strain on household budgets. Mean scores that were obtained in the knowledge test that only reflected upon credit agreements that respondents have actually entered into in the past, confirmed their ignorance pertaining to their contractual obligations and their consequent vulnerability. Consumers' age and gender seem to have noteworthy consequences for efforts to enhance informed consumer decision‐making. Younger females were significantly better informed that their older counterpart while the reverse was true for males, although differences were not significant. The significant inverse relationship between income and the LS‐means for the credit knowledge test differ from findings in developed countries and provide valuable opportunity for further investigation.     

探索消费信贷新模式

个人消费信贷业务从 1996年启动至今 ,快速增长的同时 ,多方面的问题也逐渐出现 ,为了向更高层次发展 ,商业银行必须回头去思考传统运作模式中隐藏的问题 ,引入创新思路 ,以力争在集约化与规模化经营上取得更加实质性的成效。     

消费者信用评级指标体系的研究

消费者信用是指个体消费者为购买产品或服务而使用的信用,以消费者信用评级指标体系设计为原则,建立消费者信用评级指标体系,消费者各个信用评级指标体系,不同程度影响的消费者信用能力、潜力和认可度。     

Consumer credit,household financial management,and sustainable consumption

Over the past decade, sustainable consumption has emerged as an issue of growing international prominence. Policy initiatives to facilitate more environmentally and socially preferable household provisioning have typically emphasized materials and energy efficiency. While this approach holds the prospect for some notable short‐term gains, experience suggests that longer‐term improvements are likely to fall short of expectations and trigger unanticipated rebound effects. Effective policy programs need to acknowledge the social and financial dimensions of consumer decision making and become more attentive to the role of households as catalysts of production. From this perspective, consumer payment systems take on special significance. In particular, the prevalence of credit cards and the accumulation of consumer debt in the USA and other advanced countries have been important drivers of economic growth in recent years. This paper highlights the linkages between consumer credit and sustainable consumption and discusses the structural changes in lending practices that account for the popularity of this payment system. While unsatisfactory conceptual models and inadequate data make it difficult to advance any definitive assessment of this relationship, it is possible to outline the basic elements of a research agenda in this area.     

Impact of Consumer Installment Debt on Food Expenditures

Trends in consumer installment credit over the period 1980 to 1989 are discussed; as well, a two-equation recursive model is developed to identify and assess the impact of installment credit on food expenditures. The first equation concerns factors affecting the ratio of consumer installment credit to personal disposable income, namely habit persistence, expected income, the prime interest rate, the unemployment rate, and the percentage of the population aged 25 to 44. The second equation focuses on factors affecting real per capita food expenditures, namely the real price of food, real per capita personal disposable income, seasonality, and a polynomial distributed lag of the measure of the ratio of consumer installment credit to personal disposable income from the first equation. The ratio of installment credit to personal disposable income has a positive effect on food expenditures; over the long run a one percent change in this ratio leads to a 0.15 percent change in real per capita food expenditures. On average, it takes just over six months for a change in this ratio to be transferred to food expenditures.     

The Effect of Debt on Perceived Household Welfare

Much of the traditional literature on consumer credit implies that using consumer credit will make families feel worse off but economic investment theory implies the use of consumer credit will not cause a decrease in utility. The effect of changes in debt-asset ratios and other financial and demographic variables on perceived financial well-being are investigated in this article. The results of the analyses indicate families' utility levels did not decrease when they used consumer credit to acquire commodities.     

Fueling the Credit Crisis: Who Uses Consumer Credit and What Drives Debt Burden?

Excessive household debt contributed to the worst recession in decades. Insights about borrowing and spending behavior can inform economic recovery forecasts, policy decisions, and financial education. This study identifies life cycle and credit attitude as key determinants of who uses debt. Younger households are more likely to borrow for consumption, as are those who believe that it is all right to borrow to purchase luxury goods or cover living expenses. Furthermore, households that condone borrowing for these purposes have a higher consumer debt burden. Debt capacity (or creditworthiness) and financial discipline are also significant factors in determining household debt use.     

Household Debt Quintiles: Explaining Changes 1983–1989

Households' changes in consumer debt from 1983–89 were examined using the panel dataset of the Survey of Consumer Finances. Logit models of the odds of an increase and a decrease in debt quintile revealed four factors hypothesized by Bryant (1990) to be symmetrically related—household size, respondents marital status, inflationary expectations, and time preferences. Asymmetrical effects of other variables, including life cycle consumption needs, present resources, expected future resources, and preferences were found for either the odds of an increase or decrease in consumer debt, but not both. Households' access to credit markets and changes in economic status between 1983 and 1989 also significantly affected the odds of change in consumer debt status, albeit not consistently across models. Household level change in consumer debt and the factors that affect it are more complex than hypothesized.     

If You Build It,Will They Come? A Simulation of Financial Product Holdings Among Low-to-Moderate Income Households

The 1995 Survey of Consumer Finances was used to determine holdings of selected financial products by low-to-moderate income households, defined as households with incomes less than or equal to 80% of median household income for their region. First, we estimated determinants of holding bank accounts. Next, we estimated determinants of holding other selected products, contingent on holding a transaction account. Finally, we estimated the potential demand for these other products by households without accounts, should they become account holders. We found that if non-account holding households were to obtain accounts, they would increase their demand for credit cards, first mortgages, car loans, consumer loans, certificates of deposit, and IRA/Keogh accounts. The implications for financial institutions, policy makers, and consumer educators are presented.     

消费信贷对经济增长的影响研究 ——以青海为例

近年来,我国消费信贷的规模不断扩大,基于鼓励消费的独特作用,消费信贷已成为促进我国经济增长的重要手段.本文利用青海省1995—2018年的时间序列数据,包括消费信贷余额与GDP,使用VAR模型来论证消费信贷与经济增长之间的关系.通过实证分析表明,青海省消费信贷的发展确实会促进经济增长,但由于诸多因素的存在,消费信贷对经...     

The Employment Act, 1980

A research model was developed to explain the probability of households using major types of credit cards, and empirical tests were performed for differences among the utilisation behaviours of five types of credit card. Many differences were revealed, and support was shown for the overall hypothesis of differences among the types of credit card with regard to utilisation behaviour. These demonstrated differences implied that credit grantors and researchers should recognise that the behaviour of consumers in using credit cards depends on the type of credit card. Separate analyses by type of card are warranted so that the true effects of selected consumer characteristics can be examined.     

基于层次分析法的农户信用评估

科学的农户信用评估是农村信用社防范农户信贷风险的有效手段。为保证农户信用评估的科学性和合理性,设计农户信用评估指标体系,运用层次分析法求取各项评估指标的权重,并根据相关专家的意见确定农户信用评估指标的打分标准,同时考虑各项评估指标的权重,构造出农户信用评估模型。利用该模型科学评估农户信用等级,以提高农村信用社防范农户信贷风险的能力。     

Acquisition mode and credit card overspending behavior: An empirical analysis of the credit card industry

Although credit card overspending behavior has become a critical societal concern with severe negative impacts on consumer welfare and economic stability, research on credit card overspending behavior remains fragmented and understudied. This study investigates new types of antecedents of credit card overspending behavior that are overlooked in the prior literature—the acquisition mode of credit card companies. Based on data set from a large commercial bank in China, this study measures credit card overspending behavior using consumption amount, cash withdrawal amount and overdueness, and suggests that gift acquisition has a positive effect on cash withdrawal amount and overdue probability as well as a negative effect on consumption amount. Furthermore, we find that this relationship could be weakened for female customers and for customers with higher education levels. This study provides theoretical implications for both the credit card overspending literature and customer acquisition literature. It also has important implications for consumer welfare and public policymaking.     

我国西部地区农户借贷行为影响因素的实证研究——基于804户农户调查数据分析

诠释农户的性质、行为及其生存环境是讨论我国农村金融问题的逻辑起点,本文运用二元选择模型,利用农户调查问卷得到的数据对西部地区农户借贷行为的影响因素进行了实证研究。得出以下结论:个人与家庭特征、经济特征、环境特征均是影响西部地区农户借贷行为的因素,尤其是农户的家庭年收入、农户的家庭规模、家庭主要支出、户主年龄、家庭劳动负担率、2008年是否发生重大事件等因素对农户借贷行为的影响具有非常显著的作用。     

Consumer Knowledge and Understanding of Consumer Credit

Much has recently been written about the desirability of restrictive usury laws. While low maximum rates may prevent excessive charges to some, they also limit the ability of high-risk persons to borrow. Therefore, if consumers have a sufficient understanding of the credit market to realize what they are paying for and how much they are paying when they borrow, a case can be made against low maximum finance rates. This article reports on a nationwide study designed to measure consumer knowledge and understanding of consumer credit. The results are that while consumers can generally rank lenders correctly in terms of cost, there are serious gaps in their knowledge of the credit market. Education and income are the key determinants of knowledge and understanding of consumer credit.     

消费品市场信用缺失的博弈分析

当前我国的整个市场特别是消费品市场存在着严重的信用缺失问题,对消费者的身心造成了极大的伤害.市场经济是信用经济,诚信原则是市场经济的灵魂和基础,重建消费品市场诚信环境,维护消费者权益是当务之急.信用是博弈的结果,从消费者与企业、企业与监管部门的博弈可以找到消费品市场信用缺失产生的原因.针对问题,可以对症下药,从根源上进行治理:建立高效的信息传输机制;完善法律体系,加大监督执法力度,建立高额赔偿金制度,让造假者付出高昂的成本;深化产权制度改革,使产权所有者具有进行重复博弈的动力,而着眼于长远利益.     

Die geplante neuordnung des konsumentenkreditrechts in der schweiz

The planned reform of consumer credit law in Switzerland. The author discusses the bill of a new Swiss Act on Consumer Credit. It is the intention of the bill to protect consumers engaged in all forms of direct or indirect acquisition on credit of goods and services. The bill contains detailed regulations in order to realize the consumer's freedom of entry into contract. There are rules concerning advertising, the duty to inform the consumer about effective credit cost, the protection against unfair clauses, and restrictions with regard to the duration of the credit period. The bill enacts rules concerning the default of consumers, too: Excessive interest rates in case of default are banned; the consumer may apply for adelai de grâce. Finally, the bill will improve the possibilities of preventive protection and of legal action on the part of the consumer. There will be criminal sanctions if the creditor does not fulfil his obligations. He may also loose his contractual rights. Consumer organizations may proceed against abuses in the advertising by consumer credit lenders.