Credit cards offer a convenient way to borrow. However, using such cards may lead consumers into a debt trap if they regularly revolve the balance on their cards. This paper identifies two types of credit cards (bank- vs. store-issued) and measures the differences in the propensity to revolve debt and the amounts of revolving debt between the two types. Next, it examines how the determinants of both these aspects of borrowing behavior differ by the type of card.
Patryk Babiarz presenting, Sae Rom Chung not able to attend.
