Credit Card Debt: Nescience or Necessity?

Guzin Akin (), Ahmet Aysan, Sezgim Dasdogen () and Levent Yildiran ()
Additional contact information
Sezgim Dasdogen: Department of Economics, Istanbul Sehir University

No 1315, Working Papers from Economic Research Forum

Abstract: This paper attempts to assess whether the driving factor behind the rising credit card indebtedness of consumers in Turkey is financial illiteracy. Using the results of a nationwide survey, the authors conclude that even though credit card borrowing frequency and debt amount are affected by components of financial literacy, being credit-constrained has a very pronounced impact. An exploratory analysis finds that the probability of irrational credit card borrowing is increased by being credit-constrained but not affected by financial literacy. These findings suggest that credit card debt is at least as much a result of necessity as nescience.

Pages: 28 pages
Date: 2019-08-21, Revised 2019-08-21
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-fle and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2019/07/1315.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://erf.org.eg/wp-content/uploads/2019/07/1315.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2019/07/1315.pdf)
https://bit.ly/2Zmb65j (text/html)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://bit.ly/2Zmb65j [301 Moved Permanently]--> http://erf.org.eg/wp-content/uploads/2019/07/1315.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2019/07/1315.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:1315

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().