This study tests whether risk tolerance mitigates the effects of credit card mismanagement on users’ financial
satisfaction. We used data from the Health and Retirement Study and found results showing that credit card
mismanagement reduces the financial satisfaction of lower-risk-tolerance users only. The results also suggest
that the psychic costs of credit card mismanagement (i.e., stress and anxiety), not the monetary costs (fees and
higher interest rates), may be the biggest contributors to the dissatisfaction associated with credit card use.

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