The Effects of Credit Card Use on Low-Income Consumers' Indebtedness

Celso Augusto de Matos, Unisinos Business School - University of Vale do Rio dos Sinos- Unisinos, Brazil
Valter Afonso Vieira, Universidade Estadual de Maringá (UEM), Brazil
Kátia Bonfanti, University of Vale do Rio dos Sinos- Unisinos, Brazil
Frederike Monika Budiner Mette, Escola Superior de Propaganda e Marketing, Espm, Porto Alegre, RS, Brazil; Phd Student at Unisinos, Brazil
This study presents the results from a survey with 2,022 low-income consumers in Brazil. Using a linear regression model, we show that the main factor explaining indebtedness is the use of credit cards borrowed from spouse, relative or friends. Qualitative interviews also supported this practice of borrowing credit cards.
[ to cite ]:
Celso Augusto de Matos, Valter Afonso Vieira, Kátia Bonfanti, and Frederike Monika Budiner Mette (2015) ,"The Effects of Credit Card Use on Low-Income Consumers' Indebtedness", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 798-798.