Psychological and demographic factors influencing responsible credit card debt payment

Abstract

The objective of this study is to examine whether individuals' level of time preference, materialism, risk-taking, optimism, and intuitiveness along with their demographic characteristics influence their credit card debt payments. Survey data from 320 credit card users are analyzed using structural equation modeling. The findings of the study reveal that optimism, intuitiveness, and materialism have a significant effect on handling credit card debt responsibly. Moreover, perceived income adequacy and having a child also influence credit card payment behavior.