Credit Card Debt as a National Phenomena

Credit card debt is a phenomenon that is characteristic of the .. economy and banking system because the U.S. households prefer using credit cards and regularly report credit card debts. In this context, it’s important to examine what factors can influence the increases in borrowing and accumulations of debt. The phenomenon of the credit card debt related to the households was examined by Meier and Sprenger with references to the focus on individual’s preferences regarding immediate consumption that can influence the increases in borrowing and debt.

Referring to the researcher’s approach to design and measurement, it’s necessary to state that Meier and Sprenger chose to collect and analyze two types of data that are the administrative information regarding the participant’s credit card debts and attitudes to immediate consumption. The selected experiment was designed as an incentivied choice experiment, and it was aimed to explore what preferences regarding the time consuming new goods concerning the borrowing time for customers.

The researchers focused on such data as the socio-demographics information about the participants of the study, the credit data, and time preferences associated with immediate and non-immediate cnsumption. The median numbers presented ion the tables with summary statistics and time preferences reflected the data on gender, age, race, income and debt. Much attention was paid on correlating and comparing the numbers regarding the credit card debts and the focus on time.

It’s also important to state that the researchers approached the problem of increasing credit card debts in the right way because much attentionn was paid to theindividual factors as the main aspect to influence the problem of credit card debt concerning the U.S. household’s borrowing.

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