Credit Card Debt and Payment Use

Credit Card Debt and Payment Use

Charles Sprenger and Joanna Stavins Abstract: Approximately half of credit card holders in the United States regularly carry unpaid credit card debt. These so‐called “revolvers” exhibit payment behavior that differs from that of those who repay their entire credit card balance every month. Previous literature has focused on the adoption of debit cards by people who carry credit card balances, ...

Credit Card Debt Puzzles

Two thirds of US households hold bank type credit cards, and most of them revolve high-interest card debt. Standard models cannot account for the observed co-existence of such debt with (i) substantial asset accumulation by retirement age, and (ii) substantial holdings of low-rate liquid assets. Hyperbolic discounting can resolve the former but not the second puzzle (Laibson, et al., 2000). Ber...

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

With the help of a commercial bank in China, we studied consumer credit card debt behavior 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 fou...

A Simple and Secure Credit Card-Based Payment System

Machine Learning: The High-Interest Credit Card of Technical Debt

Machine learning offers a fantastically powerful toolkit for building complex systems quickly. This paper argues that it is dangerous to think of these quick wins as coming for free. Using the framework of technical debt, we note that it is remarkably easy to incur massive ongoing maintenance costs at the system level when applying machine learning. The goal of this paper is highlight several m...