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ways: A debt effect increases credit card spending, while a credit effect leads to higher credit limits. In the short run … crisis, the credit effect exceeded the debt effect in the long run, pushing down long-term utilization. In our sample period … after the financial crisis, the debt effect dominated in the long run, and credit card utilization rates rose upon the …
Persistent link: https://www.econbiz.de/10012388944
In the USA, the share of household wealth held by the richest 1% increased from 23.5% in 1980 to 41.8% in 2012. This paper contributes to understanding the causes behind this increase. First, using an accounting decomposition, I show that more than half of the increase in the share of the top 1%...
Persistent link: https://www.econbiz.de/10012616406
In this paper, we present updated measures of racial disparities in wealth using the most recent data from the Survey of Consumer Finances (SCF), augmented by household-level estimates of defined benefit (DB) pension wealth developed by Sabelhaus and Volz (2020). Including this important asset,...
Persistent link: https://www.econbiz.de/10014304774
The use of paper instruments-cash and checks-has been declining in the United States, and consumers have been gradually replacing paper with cards and electronic payments. Stavins (2021) examines the evolution of payments from paper to cards and electronic payments, while Shy (2020) shows the...
Persistent link: https://www.econbiz.de/10014304777
consumers revolve credit card debt while also keeping liquid assets as bank account deposits. This scenario is very common: 42 …, borrower-savers' credit card debt exceeded their liquid assets. The average borrower-saver carried almost $6,400 in unpaid … credit card debt and had $5,400 in liquid assets, including checking and savings accounts, cash, and general-purpose prepaid …
Persistent link: https://www.econbiz.de/10014304779
Banks impose a variety of account fees, and credit card issuers impose a variety of fees related to card usage. Using detailed data from a 2021 representative diary survey of US consumers, we investigate whether lower-income consumers and Black consumers are more likely to pay bank account or...
Persistent link: https://www.econbiz.de/10014442969
card debt. Although each personality trait is correlated with each of the financial outcomes we examine, they mostly become … statistically insignificant when we control for demographics and income in regressions. Carrying credit card debt (revolving … conscientious, more open to experiences, or more agreeable are significantly more likely to revolve credit card debt. A machine …
Persistent link: https://www.econbiz.de/10014442998
temporary negative effect on debt balances, credit limits, and the number of delinquencies, and did not affect credit scores …. The decreases in debt balances and credit limits were likely driven by a decline in credit demand when the affected …
Persistent link: https://www.econbiz.de/10014480359
In consumer credit, "ability-to-pay" (ATP) rules require lenders to consider whether the consumer can repay a loan without experiencing undue hardship. ATP rules have recently been implemented or considered in many countries and markets. Using a large panel of credit card accounts, we study the...
Persistent link: https://www.econbiz.de/10014581809
Using data from a nationally representative survey on consumer payment behavior, we estimate Heckman two-stage regressions on the adoption and use of seven different payment instruments. We find that the characteristics of payments are important in determining consumer payment behavior, even...
Persistent link: https://www.econbiz.de/10010343358