...The four articles I read give several effects for why students abuse credit cards. First, Jill M. Norvilitis, in the article “Credit card debt on college campuses : causes, consequences, and solutions” says 6 effects. 1. Two or more than two pieces of news diffusely covered in the mediums of university students who passed away as they can’t afford their credit card bills. 2. In two diffusely, before students passed away, they had told others about find stricken by the bills abruptly. 3. Lots of students in school study test period notify having several work to pay the bills they have established. 4. For tother students, the consequence can be insolvent, or having work already hard duty by debt. 5.It is expected that students who have a lot...
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...Discriminant analysis The discriminant analysis model involves linear combinations of the following form D=b0+b1X1+b2X2+…………………+bkXk The weights b’s are estimated so that the groups differ as much as possible on the values of the discriminant function. Xi is the predictor or independent variable. The data we have used is bankloan.sav. Since the dependent variable is “previously defaulted” which has nominal values as 0 for ‘NO’ and 1 for ‘YES’, we need to use discriminant analysis. The independent variables or the predictors that is used are “Age in years”, “Level of education”, Years with current employees”, House hold incomes”, “Debt to income ratio”, “Credit card debt”, “Years at current address” and “other debts”. The total number of data available for us is 800. The tables shown below is the discriminant analysis that is done on this data Analysis Case Processing Summary | Unweighted Cases | N | Percent | Valid | 700 | 82.4 | Excluded | Missing or out-of-range group codes | 150 | 17.6 | | At least one missing discriminating variable | 0 | .0 | | Both missing or out-of-range group codes and at least one missing discriminating variable | 0 | .0 | | Total | 150 | 17.6 | Total | 850 | 100.0 | Group Statistics | Previously defaulted | Mean | Std. Deviation | Valid N (listwise) | | | | Unweighted | Weighted | No | Age in years | 35.5145 | 7.70774 | 517 | 517.000 | | Years with current employer | 9.5087 | 6.66374 | 517 | 517.000...
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...Young Consumers Credit card use: disposable income and employment status Joshua Fogel Mayer Schneider Article information: To cite this document: Joshua Fogel Mayer Schneider, (2011),"Credit card use: disposable income and employment status", Young Consumers, Vol. 12 Iss 1 pp. 5 - 14 Permanent link to this document: http://dx.doi.org/10.1108/17473611111114740 Downloaded on: 26 November 2015, At: 00:30 (PT) References: this document contains references to 29 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 2151 times since 2011* Users who downloaded this article also downloaded: Downloaded by Universiti Selangor At 00:30 26 November 2015 (PT) Arpita Khare, Anshuman Khare, Shveta Singh, (2012),"Factors affecting credit card use in India", Asia Pacific Journal of Marketing and Logistics, Vol. 24 Iss 2 pp. 236-256 http://dx.doi.org/10.1108/13555851211218048 Zafar U. Ahmed, Ishak Ismail, M. Sadiq Sohail, Ibrahim Tabsh, Hasbalaila Alias, (2010),"Malaysian consumers' credit card usage behavior", Asia Pacific Journal of Marketing and Logistics, Vol. 22 Iss 4 pp. 528-544 http://dx.doi.org/10.1108/13555851011090547 Wendy Ming-Yen Teoh, Siong-Choy Chong, Shi Mid Yong, (2013),"Exploring the factors influencing credit card spending behavior among Malaysians", International Journal of Bank Marketing, Vol. 31 Iss 6 pp. 481-500 http://dx.doi.org/10.1108/IJBM-04-2013-0037 Access to this document was granted through an...
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...Abstract The abusive and excessive use of credit cards are a major economical issue in Turkey for a decade, which poses threats to the core structure of our society and the individuals’ self-esteem. News regarding the problems arising due to the inappropriate use of credit cards increases on a daily-basis, which signifies the fact that the problem shows a continually expanding trend, which is worth carrying an investigation upon. In order to overcome this problem, eight solutions were proposed. These solutions were banning the installments in shopping, copying the American model by providing collateral to the banks while getting a new credit card, requesting a guarantor per person while giving a credit card, giving maximum one credit card per person who has already debt, increasing the commission rate of the point on sale machines, educating people about the usage of credit cards and tell them its advantages and disadvantages, preparing therapy meetings by government for shopaholics and limiting cash advance credit from credit cards. The underlying research methodology of these solutions includes student surveys, internet based researching, discussions with credit card users, and discussions with personnel of banks. These proposed solutions were evaluated according to their effectiveness, feasibility, acceptability, sustainability and legality. Among these solutions three of them passed the criteria and suitable to apply. The chosen solutions can be regarded as the most...
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...Credit card usage and debts among teenagers Cummins, Haskell and Jenkins’s research study, “Financial Attitudes and Spending Habits of University Freshmen” published in 2011 in the journal Journal of Economics and Economic Education Research, examines two factors that are associated with college students’ credit card indebtedness. The author states that college students’ buying patterns and financial values affect their credit card indebtedness. Specifically, students with a tendency towards compulsive buying are more likely and those with effective financial management are less likely to hold credit card debts. Depth interview data further illustrate the contexts and causes of overusing credit cards as well as solutions for their debt problem. It sheds light on reasons why college students fall into credit card debt and suggests strategies for helping them use credit cards wisely. In the 2012 SCMP news article entitled, “Students responsible with dollars and Cents”, the writer gives statistical data collected from the survey which is conducted by the Tung Wah Group of Hospitals and the University of Hong Kong. A total of 802 undergraduate students respond to the survey. It indicates that majority of students possess one or more credit cards and one-third accumulate debt. Half of the respondents in this survey know little about credit knowledge which is significantly related to debt levels. The findings suggest that credit education is needed for students to help them make...
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...Final Draft Although there are many advantages of possessing credit cards, most Americans should not use them; because they do not use them properly to where they become liable or subject to overwhelming debt, which could damage their credit history. Personal credit card debt has doubled in the past four years and personal bankruptcies are at the highest ever, and still more Americans are spending money that they do not have. Credit cards allow and encourage individuals to buy more than budgeted, and this is obviously a situation, which is best to avoid. Knowing when it is a bad idea to use a credit card can help you to avoid adding debt to your credit card. It is no doubt that the use of credit cards have eased the rate in which people obtain goods and services, but the use of credit cards have done more damage to the finances of Americans credit card users than good. Credit cards have become a problem for most American credit card users and there are even cases that some Americans have committed suicide because of the heavy debts he or she owes the credit card companies. Should Americans continue using credit cards? The answer is definitely no as the detriment that comes with using credit cards outweighs the benefits. Credit cards are a huge convenience in everyday life, yet most people are irresponsible when using them. The convenience of possessing credit cards increase the risk of overspending because people can convince themselves to spend more than what they...
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...Analysis of Credit Card Debt Darlene Rivas Argosy University MAT 109 Professor Morris October 21, 2015 Abstract Our best intentions are to provide and ensure that potential credit card consumers are taking a double look and thinking twice before signing a contract from a banker. There are fine prints in contracts, in which inexperienced consumers miss nearly all the time. In this report, consumers will learn how to formulate the annual percentage rate, determine their monthly payment and principal, interest fees that will be applied their monthly payment. There are useful tips to ensure they will be educated in making the right decisions, and determining which plan works out best for them to prevent further debt. Analysis of Credit Card Debt If a consumer has a credit card with a balance of $5,270.00 with an annual interest rate of 15.53%, they will have to pay a minimum of 2% to the entire balance. Their monthly fee will be $105.40 towards the credit card. Furthermore, $68.20 would go towards the interest, and $37.20 towards the principal. This means that it will take a consumer over 11 years to pay off the principal off to the credit card balance. Assuming that the interest is on a fixed rate, and will not fluctuate throughout the course of time, a consumer would have to contribute an additional $100 towards the principal for the next 5 years, in order to cut the time in half towards paying off the balance. Darlene currently has a Capital One credit card...
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...Running Head: Americans Should Not Use Credit Cards 1 Americans Should Not Use Credit Cards Christopher McDonald COM/156 Donna Madison-Bell, MS Running Head: Americans Should Not Use Credit Cards 2 With more Americans in financial trouble than ever before and personal debt at an all-time high, most Americans should shun credit card use. Americans are having trouble paying for their credit card purchases and they are taking on more debt than is fiscally sound based on their income. Many people are being mislead by the appealing advertising tactics of credit card companies and most don’t understand or receive the information they need to make intelligent use of their credit cards or make important personal finance decisions. In addition, today’s economy has left many people unemployed or underemployed. To compensate for their lack of income, many people are using their credit cards to pay for basic items like food and gasoline. Because they lack a substantial income, they then can’t pay the credit card companies. Still other people might lack the will power to resist buying items that they can’t afford. Instead of rationalizing that they do not have the cash for the purchase, they use a credit card and worry about it at a later date. Americans now have more personal debt and financial struggles than ever before in the nation’s history, in part because of irresponsible use of credit. A 2007 article in the magazine Mother Jones stated that Americans owe...
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...“General Banking and Cash Management Processes: A Study of Trust bankLimited”. Letter of Transmittal September 2, 2013. Ms. Tamanna Islam Shaon Lecturer Bangladesh University of Business and Technology Subject: Financial Performance Evaluation of Mutual Trust Bank Limited. Dear Sir, With due respect, I would like to thank you for assisting me to prepare the internship report. This task has given me the opportunity to explore the activities of banking sector. The report contains a working procedure of General Banking Department which is based on its operational activities. It was a great pleasure for me to have the opportunity to work on this bank which remains a very well position than other bank in Bangladesh. I endeavor my best to come out with a good one. I would be very happy to provide you with any clarification regarding the report. Please contact with me if you have any query. Therefore, I pray and hope that you would be kind enough to accept my Internship Report and oblige thereby. Sincerely Yours, Acknowledgement At the very beginning, I am solemnly thanking the Almighty Allah. Completion of anything requires supports from various sources. I am very much fortunate to get the sincere guidance and supervision from a number of persons. I am sincerely thankful to my academic supervisor, Ms. Tamanna Islam Shaon, Lecturer of Finance Department, Bangladesh University of Business of Technology;...
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...Credit Cards, Excess Debt, and the Time Value of Money: The Parable of the Debt Banana Timothy Falcon Crack and Helen Roberts University of Otago, New Zealand The parable of the debt banana is an analogy between the accumulation of excess personal debt and the accumulation of excess body weight. We created this parable to grab student attention and to then serve as a springboard for discussion of personal debt, time value of money mathematics, the mechanics of credit cards, personal bankruptcy, moral hazard, ethics, and credit card reform. A follow-up survey in a large class (453 students; 84% response rate) showed that 92% of students seeing the parable alongside the underlying finance principles said that it grabbed their attention more than if the underlying finance principles alone were presented, and 87% of students said it made an impression upon them that will make them more careful in their future credit card spending habits. We provide worked examples of credit card use as well as a spreadsheet that lets readers explore these examples and perform sensitivity analysis. INTRODUCTION The parable of the debt banana is an analogy between the accumulation of excess personal debt and the accumulation of excess body weight. We created and presented our parable in a compulsory Finance 101 course taken by all business majors. Most students had little or no exposure to the world of finance and many had poor mathematical skills. Both their lack of financial...
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...Consumer Behavior of Credit Card Users in an Emerging Market Prof. Dr. Kemal KURTULUŞ, Istanbul University, Istanbul, Turkey Dr. Süphan NASIR ABSTRACT Saturation of the developed markets pushes multinational corporations (MNCs) to newly emerging markets for business expansion. As emerging markets provide growth opportunities for multinational businesses, the development and implementation of marketing strategies are critical for the success of MNCs in these newly emerging markets. Emerging market conditions differ significantly from those of the developed world markets and these conditions affect firm’s performance. Therefore, understanding market conditions of an emerging market is likely to become an increasingly important issue. Credit card companies have also expanded quickly into the emerging markets in order to exploit the opportunities that are provided by the emerging markets. Credit card usage pattern of emerging markets also differs from those of well-developed markets in important ways. Understanding the factors that explain consumer behavior of credit card users in emerging markets could provide an essential insights to marketing strategists of financial services, retailers, and businesses in promoting use of credit cards. Thus, this paper considers the consumer behavior of credit card users in emerging markets in the light of Turkish experience. INTRODUCTION Marketing managers can no longer rely on only domestic markets...
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...Opinion of consumers towards credit card usage A Study in Chandigarh 1. INTRODUCTION 1.1 History As far back as the late 1800s, consumers and merchants exchanged goods through the concept of credit, using credit coins and charge plates as currency. It wasn't until about half a century ago that plastic payments as we know them today became a way of life. 1.1a Early beginnings In the early 1900s (Ben Woolsey, 2011), oil companies and department stories issued their own proprietary cards, according to Stan Sienkiewicz, in a paper for the Philadelphia Federal Reserve entitled "Credit Cards and Payment Efficiency." Such cards were accepted only at the business that issued the card and in limited locations. While modern credit cards are mainly used for convenience, these predecessor cards were developed as a means of creating customer loyalty and improving customer service, Sienkiewicz says. According to Ben Woolsey, the first bank card, named "Charg-It," was introduced in 1946 by John Biggins, a banker in Brooklyn, according to MasterCard. When a customer used it for a purchase, the bill was forwarded to Biggins' bank. The bank reimbursed the merchant and obtained payment from the customer. Purchases could only be made locally, and Charg-It cardholders had to have an account at Biggins' bank. In 1951, the first bank credit card appeared in New York's Franklin National Bank for loan customers. It also could be used only by the bank's account holders (Ben Woolsey...
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...Yamin Aye Student ID: 553-9264 Subject: Business Research Methods Article 01: Credit card use irresponsibility by College students in US Many college students in US have been aware of that the risks of having debt as they use credit card and their responsibilities to be able to settle upon their credit card usage. This article is interesting because sooner or later our country will be having credit card systems from banks and many college students as well as most of the people have to be aware of the risks of incurring debt from credit card usage when we have disposable income and how our employment status affect paying back the loan. In this article, analysts have hypothesized those college students who have greater level of disposable income and employment status have greater credit card irresponsibility. Greater levels of income were also associated with greater level of compulsive buying, money anxiety and the employment status had proved sensitivity on price too. The findings from this article were based on 301 undergraduate college students from New York City having reported with their disposable income and employment status using convenience sampling during March 2006 and they were asked to complete survey regarding with credit cards. Each survey takes approximately ten minutes to complete and response were recorded in anonymous manner. The study was exempted from review by the University...
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...Consumer and commercial credit management By Robert Hartzell Cole Loan Portfolio Management - OCC of understanding or poor communications between credit management and ... commercial, real estate, consumer, international, and health care). Limits may also be placed on individual loan products within a loan category. For example, although a www.occ.gov/publications/publications-by-type/... S -B R Mind Your Commercial Credit Score Mind Your Commercial Credit Score By Cyndia Zwahlen TSpecial to The Times ... based powerhouse of consumer credit reporting. ... company’s commercial credit data as a risk-management tool. “The information availability, www.experian.com/small_business/pdf/la_times_reprint.pdf Job profile: Credit Risk - Directions If working in retail and commercial banking, the School of Finance ifs Professional Certificate in Banking covers aspects of credit and risk, including modules in the Principles of Lending and Credit and Consumer Credit Risk Management. www.directions.org.uk/media/job_profile_pdf/Credit-Risk.pdf Product Full Service Credit An Integrated, Full-Service ... An Integrated, Full-Service Credit Card Management Solution that Uses a Globally Recognized Processing Platform ... • Consumer • Commercial (business and corporate) • Commercial lines of credit • Installment loans • Co-branded cards www.cardsolutions.fiserv.com/.../Full%20Service%20Credit.pdf Understanding Your Credit Reports - Springboard Debt ... 1 ©2013 Springboard Nonprofit...
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...“Comparative Analysis of Impulsive Buying Behaviour between Youth and Elderly Credit Card Consumers” A research report submitted in partial fulfilment for the degree of Master of Business Administration Submitted By Aditi Bhatt C 02 Anshul Chaudhary C 04 Rohit Kumar C 35 Rohit Nair C 36 Vinika Yadav C 53 Symbiosis Institute of Management Studies Symbiosis International University September 2014 ACKNOWLEDGEMENT We take this opportunity to express our gratitude to the people who have been instrumental in the successful completion of this project. We are extremely thankful to Professor Dr Asha Nagendra, the Guide of this project. She has guided us on this research and correcting various documents and amending them with attention and care. She has taken pain to go through the project and make necessary correction as and when needed at each and every step. We express our thanks to the Director of Symbiosis Institute of Management Studies, Pune for extending its support. We would like to show our greatest appreciation for the support extended to us by the respondents, which was vital for the success of the project. We are also thankful to all the friends, faculties and the respondents whose enthusiastic participation has helped us in our research. TABLE OF CONTENTS Sr. No | Topic | Page...
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