The purpose of the study was to determine factors predicting the amount of outstanding credit card balances among credit card revolvers. Data from the 1998 Survey of Consumer Finances and a Heckman two stage estimation were used for analysis. Factors related to the likelihood of having an outstanding balance differed from the factors affecting the amount of the outstanding credit card balance. Education, income, real assets, credit card interest rate, number of credit cards, the credit limit, a positive attitude to credit, and behind schedule payments were positively related to the outstanding credit card balance. Key words: Credit cards, Heckman model, Revolving credit card user, Survey of Consumer Finances

Download Journal

Comments are closed.