Unrealistic Optimism, Compulsive Purchasing and Debt-Stress among Credit Card Users in Sri Lanka

Credit cards become increasingly popular in Sri Lanka while a total of 78,201 new issues were 2019 first quarter (Central Bank report). card usage affects the consumption patterns people, sometimes leading to purchase excessively with impractical confidence (Omar, et al., 2013). According central bank report, around 118,905 are being defaulted where payment is arrears for 90days or more showing an increment credit debts, which may result stress among users. In view timeliness and relevance this issue, study aims investigate impact unrealistic optimism compulsive purchasing on debt-stress users Lanka. This employs quantitative approach collecting data using self-administered questionnaires 301 cardholders Western Province, who chosen based non-probabilistic convenience sampling method. found moderate positive both debt stress. Further, correlation was between too. research contributes fill gap extant literature by broadening understanding concepts such as optimism, purchasing, prevalent managerial implications, provides better might be good reference banks, service providers investors developing their policies. it will support business sector develop Lankan non-cash market policymakers tax authorities can understand causes high debts.